Young people from unemployment to employment.HANDBOOK WITH GOOD PRACTICES AND SOLUTIONS

YOUNG PEOPLE FROM UNEMPLOYMENT TO EMPLOYMENT HANDBOOK WITH GOOD PRACTICES AND SOLUTIONS This book is a part of the project activities "Young people from unemployment to employment" under KA1, sector „Youth“ of ERASMUS+ Program, Contract № 2015-3-BG01-KA105-022627; the book is published by funding from the Centre of Human Resources Development and ERASMUS+ Program. The positions expressed in the book do not represent the official positions of the Centre of Human Resources Development, the ERASMUS+ Program and the European Commission either. All positions included in the book represent authors views and partner organizations attitude.

Coordinating organization:

Association „Institute Perspectives“

Partner organizations: ICM Jindřichův Hradec z.s. – Czech Republic; Pärnu Koidula Gymnasium - Estonia; Comitato d'Intesa - Italy; Asociacija „Apkabink Europa“- Lithuania; European Centre for Integration and Development- Poland; Edirne Sınırötesi Kültürleri Araştırma Derneği - Turkey;

YOUNG PEOPLE FROM UNEMPLOYMENT TO EMPLOYMENT HANDBOOK WITH GOOD PRACTICES AND SOLUTIONS

© Compiler: Ahmed Kuytov Publisher: Institute Perspectives, Svishtov Print House: Deylikont, Sofia Original cover design by: Salim Kuytov © Authors Staff: Chapters I and II – Ahmed Kuytov Chapter III – Laura De Riz, Stefano Dal Farra, Silvia Facen, Lisa Bordin, Alessandra Bortot, Lorenzo Maria Barboni, Alexandra Aura Dogariu, Federico Vieceli.

Chapter IV –Claudia Grabowy, Katarzyna Kabat, Adriana Paclawska, Karolina Skladan, Mateusz Olejarczyk, Michal Scislicki, Alexander Kus. Chapter V - Kristýna Popelková, Anastasiya Halavanava, Kristýna Sulková, Alice Primasová, Kristýna Kvapilová, Nikola Filipová, Hana Reslová.

Chapter VI – Albertas Kazlauskas, Eimantas Riauba, Povilas Riauba, Paulina Šeškauskaitė, Austėja Kryžanauskait, Raddvile Mikalciute, Gabija Narvilaite.

Chapter VII - Anastasia Zahhartsenko, Klim Dašitšev, Anastasia Gumenjuk, Polina Luzanova, Igor Mohhov, Anastasia Tsehhonatskaja.

Chapter VIII – Lecturer Ass. Elka Tsoneva, PhD Chapter IX – Svetla Yordanova, PhD Chapter X – Ass. Prof. Nikolay Zivkov, PhD Translation in English: Mila Mihaylova – Chapters III, IV, V, VI, VII, IX. Nenko Manolov – Chapters II, VIII, X. ISBN 978-619-7304-02-2

Svishtov May, 2016

Special thanks to all persons who contributed to the activities implementation at the time of the youth exchange and accompanying initiatives.

The Association “Institute Perspectives” and all partner organizations would like to express our most heartfelt thanks to Mr Nikolay Petrov, Deputy Governor of Veliko Turnovo district, for his participation in the meeting between project participants and successful young entrepreneurs on 10 April 2016 in Veliko Turnovo as well as in the Round Table on 13 April 2016 in Svishtov. His participation and his shared views have been useful for all those present!

We should like to give our very warm thanks and acknowledgement to Mr Rumen Petrov, Director of Youth House in Veliko Turnovo and to Mrs Vanya Lazarova, Expert of youth politics, for the kind meeting host on 10 April 2016 in Veliko Turnovo.

We would also like to include in these thanks Mrs Tanya Gutseva, Director of the Public Employment Office in Svishtov, for the hosting and for her presentation about the activity of this institution on 8 April 2016.

We express here our thanks to Mrs Tsvetanka Kirova, Director of “Dimitar Blagoev” Secondary School and to Mrs Mariya Petsova, Assistant Director, for their help in the organisational work on the Round Table “Young People From Unemployment To Employment”, held on 13 April 2016.

We would like to express our sincere thanks to Mr Kalin Kostov, a Municipal Councilor of the Municipality of Svishtov, for his welcoming speech to the youth exchange participants on 8 April 2016.

Special thanks for their participation in the organized meeting between our young participants and the successful entrepreneurs, held on 10 April 2016 to: Mr Obreshko Nechev, The Director of the Public Employment Office in Veliko Turnovo.

Mrs Violeta Belcheva, The Director of the first private Labour Exchange in the north cenral region in Veliko Turnovo „PERFEKTA LTD“.

Mrs Mariya Ilcheva, The Chair of the standing committee in sport, tourism, children and youth of Veliko Turnovo Municipality.

Mrs Ekaterina Stoyanova, The Manager of the Translation and Legalisation Agency „STEK“ LLC. Mr Boyan Kasurov, The Manager of the IT company “Er Ef Si Soft”.

Mr Krasin Karakotsev, a representative of the accountancy bureau "Vikra" Ltd. We woul like to give our thanks to the guests and lecturers at the Round Table “Young People from Unemployment to Employment”, held on 13 April 2016 in the ceremonial hall in “Dimitar Blagoev” Secondary School in Svishtov: Mr Gencho Genchev, Mayor of the municipality of Svishtov.

Mr Kristiyan Kirilov, Chairman of the municipality council of Svishtov.

Mrs Lubomira Petrova, Secretary of the municipality of Svishtov.

Mr Krasimir Dachev, an entrepreneur.

Assoc.Professor Biser Krastev, PhD, university teacher at a high school in agrobusiness and regional development.

Ms Veneta Petkova, a representative of “D.A.Tsenov” Academy of Economics, Svishtov.

I.

CONTENTS Introduction .............................................................................6

II.

Youth unemployment in the European Union – situation and challenges.................................................................................8

III.

Italian National and Regional Civil Service: When a volunteer transforms into an employee………………………………...13

IV. Youth in the unemployment perspective in Poland.....………19 V.

Solutions for tackling the high youth unemployment. The example of the Czech Republic ……………………………..25

VI. Youth unemployment in Lithuania………………………….33 VII. Youth unemployment in Estonia. Methods for solving the problem …………………………………………………….39 VIII. With European awareness and tolerance towards youth as a vulnerable group on labor market ..........................................45 IX. Young people, youth employment and employers………….55 X.

Ability and entrepreneurial skills among young people – a prerequisite for independent work or what they must know if they desire to become entrepreneurs………………………...62

I.

INTRODUCTION

The handbook, that you have in hand is a result of the work of young people and university teachers from Bulgaria, Italy, Estonia, Lithuania, Poland, Czech Republic and Turkey. The aim of this book is to propose theoretical knowledge’s to the young people, who wish right now to become entrepreneurs. For youth unemployment may decrease mainly by creating new work positions and possibilities, which will engage youth potential and energy. Of course, education and additional qualifications are important and valuable for the person development, but we recommend young people to look for possibilities by which they could improve themselves, economic system, European community by means of completely new innovative ways. Young European people should invest their potential in all areas of the public and economic life on the Old Continent. Youth unemployment should be minimized, for the opposite would have the effect of serious consequences of the people life in Europe. Entrepreneurship cannot be considered from an economic aspect only, it is social, educational and so on. Enterprise is needed in each personal act. Youth unemployment is mainly an enterprise absence!

The general purpose of our project was to provide the knowledge and skills development in young people, by which they could make sure of employment and their personal improvement. A distinct result from the implemented project (01 February 2016 - 31 May 2016) is the publishing of the Handbook, by which we would like to increase awareness on the topic at a local, national and international level.

The handbook contains articles, which provide information about the situation – youth unemployment in the European Union and in each partner countries.

Secondly, we present the measures against unemployment and different prevention programmes in the EU and in the partner countries.

Third, Assoc. Professor Nikolay Zivkov describes which skills and abilities young people should have to be entrepreneurs.

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By the information and good practices included in the handbook, we provide to the readers the most important things on the topic – youth unemployment on the European level. This is the problem which concerns all the European States. When the problem is on a large scale, then actions shall be taken at as many as possible levels in the society on the one hand, and by the state institutions, on the other hand. One should consider the fact, that youth potential must be put into useful initiatives, otherwise they could turn it into dangerous and damaging actions. We think that youth energy should be directed into constructive and creative projects, by which we can guarantee the prosperity of the whole European family!

By this book, we, from the Institute Perspectives and our partner organizations desire to provide a valuable tool, by which young people shall easier overcome the difficulties and challenges, arising from still high unemployment levels on the European Union.

Ahmed Kuytov

Chairman of the Association „Institute Perspectives“

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II.

YOUTH UNEMPLOYMENT IN THE EU – STATUS AND CHALLENGES

1. Dimensions of youth unemployment During the last decade and especially since the start of the economic and financial crisis the share of unemployed persons in the EU has increased considerably. Among the youth the risk of unemployment is even higher, since they have less job experience they are often the first victims of job cuts. In some member states during the peak of the financial crisis this has led to situations in which it was almost impossible for the youth to make the transition from finishing school to beginning work.

By information of Eurostat from March 17 th 2016, the percent of unemployed persons up to 25 years old at the end of 2015 in 28 member-countries of the EU is 19.9%, compared to a level of 23.8% in the beginning of 2013. In the countries of the partner organizations in the project the ratio is: Country Bulgaria Czech Republic Estonia Italy Lithuania Poland Turkey Fig. 1

2015 21.0% 11.2% 13.8% 39.5% 13.9% 20.6% 18.6

2013 28.3% 19.0% 17.2% 40.4% 22.8% 27.5% 17.3%

Decrease 7.3% 7.8% 3.4% 0.9% 8.9% 6.9% +1.3%1

From the data of Figure 1 an impression can be made about the state of youth unemployment in the countries partnering in the project. In the frame of two years Lithuania has managed to decrease its percent of youth unemployment the most, while in Italy the decrease is minimal, and in Turkey youth unemployment has increased. In every other country the percent decrease of unemployment among young people 1

В Р Турция, за разглеждания период младежката безработица се е увеличила.

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until age 25 varies from 3.4% in Estonia to 7.8% in the Czech Republic.

The given data shows that slowly the problem with youth unemployment is being controlled. The level of 19.9% in all the countries together in the Union, however, is too high. The situation is especially critical in some member states, where unemployment affects every second or every third young person and creates perspectives for the advent of a “lost generation” with a formidable socioeconomic price2. The European Union, through its varied institutions and organs, aims to take measures, which will lead to greater employment of youth.

2. The basis of measures for prevention of unemployment taken by the EU At the very founding of the European Union in the Contract for EU in Part IX the foundations are laid upon which later measures will be taken to prevent unemployment. All member countries in the Union are enshrined to work to coordinate a strategy for employment, and more specifically, for the development of a qualified, educated and adaptive workforce, as well as labor markets able to react quickly to economical changes, with the aim of reaching economic, social and territorial rapprochement, as well as solidarity between member states3.

In the main document, indicating the goals for development of the EU, which must be reached by the end of the decade – Strategy Europe 20204 is a set priority for inclusive growth, through which promotion of an economy with a high level of employment is aimed for, which will create the conditions for social and territorial rapprochement. Attention is paid to the level of employment of the population aged 20-64, which has to rise from the current 69% to at least 75%, including through a larger participation of women, older workers and a better integration of migrants in the labor force.

2

Специален доклад на Европейската сметната палата., Първи стъпки на европейската „Гаранция за младежта“ и възможни рискове пред нейното изпълнение., 2015., №3., стр.8 3

Чл.3 & чл. 145 от Договора за Европейския съюз. Публикувани в Консолидирани текстове на Договора за европейския съюз и на Договора за функционирането на европейския съюз., Люксембург: Служба за публикации на Европейския съюз., 2010 г. ISBN 978-92-824-2571-8 4 ЕВРОПА 2020; Стратегия за интелигентен, устойчив и приобщаващ растеж., Брюксел, 3.3.2010 г.

COM(2010) 2020 окончателен.

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The actions for this priority will require modernizing and support of the European policy for employment, education, and training, and of the systems for social protection through the increase of participation in working life and the decrease of structural unemployment, as well as improving the corporative social responsibility in the business community. Access to care facilities for children and care for other members of the family will be important in this regard. The application of a set of principles on flexible security and enabling people to acquire new skills for adjustment to new conditions and potential career changes will be the key to this.

During November 2015 the European Commission published a brochure intended for use by the general public5. It states that the main priority of the European commission is for Europe to start growing again and to increase the number of jobs without generating new debts.

Since as a result of the 2009 economic crisis there is uncertainty in the economical perspectives and a high level of public and private debt, some members of the EU reached a stage of refraining from investments. In the European community there are resources, but they have to be directed to the areas where they are most needed. For this task it is necessary that projects be worked out, through which the resources can be utilized in the most effective way. The commission is making efforts for a more intelligent use of the available financial resources and the more flexible assimilation of public funds, while simultaneously increasing the quality of the regulatory facility of the use of public funds. The commission foresees mobilization of public and private sources of financing to generate additional private investments without resorting to new debts. With the aim of securing additional financing the Commission, in cooperation with the European Investment Bank, proceeded with the implementation of the investment plan for Europe. It is based on the new European Fund for Strategic Investment, which was set up with EU funds in 2015. The initial capital is of 21 billion Euro, which is projected to grow by a multiplier effect, which is expected to lead to other investments for more than 315 billion Euro6. So over the next three years 1.3 million jobs could be created.

The investments will be directed towards: building infrastructure for 5

Политиките на Европейския съюз: Десет приоритета за Европа., Брюксел, Белгия., Ноември 2015г. ISBN 978-92-79-49455-0.

6 http://ec.europa.eu/priorities/jobs-growth-and-investment_en

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broadband transport and energy networks; education, research and innovation; projects utilizing renewable energy and energy efficiency; as well as projects that help young people find jobs. In this document, the Council urges the Commission and Member States to introduce a "Guarantee for Youth," which will monitor systematically and across the whole territory of the EU whether young people aged under 25 receive proposals "of good quality" for employment, continuing education, professional practice or training up to four months after they lose their jobs or leave the system of formal education. The program will be financed from the EU budget through the European Social Fund and the Special Initiative for Youth Employment, which is intended to be allocated 12.7 billion Euros for 2014-2020. Additional financing at the national level will be needed, since in addition to measures aimed at individuals, structural reforms will also be needed. 7 3. Guarantee for Youth8 Unlike previous programs, "Guarantee for Youth" aims to provide one of four alternative proposals (work, professional practice, training or continuing education) to all young people who are unemployed and not studying or training in the whole EU in a systematic way. According to the Council, Member States should implement the program for the Guarantee for Youth "depending on the conditions at the national, regional and local level." Under the program "Guarantee for Youth," every young person under 25 years, who has graduated from school and is unemployed, should receive a "quality" job offer, consistent with their level of education, skills and experience. An alternative could be providing the opportunity to acquire education level, skills and experience needed to find a job in the future through continuing education, professional practice or internship.

As an example of activities at the institutional level that will be implemented in the next few years to achieve the above objectives, we can point to: 7

Специален доклад на Европейската сметната палата., Първи стъпки на европейската „Гаранция за младежта“ и възможни рискове пред нейното изпълнение., 2015., №3., стр.8 8 Специален доклад на Европейската сметната палата., Първи стъпки на европейската „Гаранция за младежта“ и възможни рискове пред нейното изпълнение., 2015., №3., ISBN 978-92-872-2059-2

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-Creating "one stop shop" points (for example in the public employment services and online).

-Improving database and support services related to professional and curriculum development.

-Arranging campaigns to raise awareness.

-Assisting Voluntary organizations for mentoring services.

-Creating Analysis centers and the development of models of policies.

The measures taken at the individual program level are: -Acquiring their first professional experience -Providing individual support in a work environment.

-Support for development projects of young entrepreneurs.

-Direct funding for internships and professional practice, and the provision of training on the use of digital technologies.

-Encouragement of youth mobility.

Following the audit by the European Court of Auditors in 2015, there are these challenges to the implementation of the "Guarantee for Youth": -Implementation of the program requires in-depth structural reforms of training, job search and education to improve the transition from school to work and perspectives of young people for employment.

-Guarantee for Youth encourages a wide spectrum of proactive measures to increase demand for youth on the labor market. Such measures (such as temporary and targeted subsidies for employment or salary or grants for professional practice and experience) can help young people enter the labor market and to further develop their skills.

-A number of drawbacks have been established regarding the information provided by Member States on key aspects involved in their national plans to implement the program. Examples of defects are bad or missing analysis of mismatches between the supply and demand of skills, lack of exposure to the way planned measures will ensure the success of all young NEETs9.

-In Some Member States, unemployed youth stand to receive unemployment benefits or welfare benefits with a lower amount if they do not accept any reasonable job, apprenticeship, training or education.

If you do not pay enough attention to this principle there is a risk to the 9

Млади хора, които не работят, не учат и не се обучават.

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effectiveness of the program "Guarantee for Youth" to be reduced due to insufficient involvement of the participants, while simultaneously reducing responsibility of Member States to provide proposals with good quality.

-The advice of the Council calls on Member States to "promote mutual learning at national, regional and local level between all stakeholders in the fight against youth unemployment in order to better develop and apply the Guarantee for Youth programs in the future." The Court found that with the exception of France, the principle of "mutual training" is not included in any of the reviewed national plans for implementation of the program.

The conclusion to which we come, after the aforementioned challenges is that it will take longer than planned to implement the program fully.

The reported challenges corresponding to structural reforms, insufficient analysis of the problem, the benefits that stop the desire of young people to seek employment and the missing opportunities for mutual learning create problematic situations that hinder the implementation of the program.

III. ITALIAN NATIONAL AND REGIONAL CIVIL SERVICE:WHEN A VOLUNTEER TRANSFORMS INTO AN EMPLOYEE National Civil Service

National civil service is an opportunity for young people between 18 and 28 years old of one year experience dedicated to a solidaristic task, which means also responsability to common good. Voluntary civil service has a strong educational and formative value, it is an important and personal growth opportunity, it is a kind of engaged citizenship who contributes to the social, cultural and economic development.

In recent years, also due to negative economic trends, national civil service has become a good opportunity for all the youngsters to get ready for an authentic working experience. By giving a small salary, national civil service is considered as a sort of first, temporary employment between the world of school and the world of work.

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Youngsters can do the civil service in the following fields: • social assistance; • environmental protection of the territory and civil protection • educational and cultural promotion; • artistic and cultural heritage; • abroad civil service.

The projects provide an engagement of 30 hours per week and a salary of 433€ per month.

National civil service has been active since 2001, and it has replaced “servizio sostitutivo civile”, that is moral objection to mandatory military service. From 2001 to 2004 313.535 young people from all over Italy has taken part in national civil service projects. In 2014 there were 15.114 volunteers employed in Italy , and in Regione Veneto they were 647.

National civil service has been active since 2001, and it has replaced “servizio sostitutivo civile”, that is moral objection to mandatory military service. From 2001 to 2004 313.535 young people from all over Italy has taken part in national civil service projects. In 2014 there were 15.114 volunteers employed in Italy , and in Regione Veneto they were 647.

More than a half of the 14.637 volunteers who has taken part in 2014 projects in Italy (60,79%) worked in Assistance projects, 24,62% in Educational and cultural promotion projects and 10,80% in Artistic and cultural heritage field. Environmental protection of the territory and civil protection projects has been selected by 3% of youngsters. In 2014, the majority of participants were between 24 and 26 years old (33,44%), 30,67% were between 21 and 23 years old. Fewer were youngsters, aged between 27 and 28 (18,63%) and the youngest between 18 and 20 (17,26%).

Almost the majority of volunteers has a high education level.

Approximately 60% of volunteers has a high school degree, 34% has a bachelor's degree. Only 6,65% of volunteers has a middle school degree.

As far as Comitato d'Intesa is concerned, 27 youngsters participated in National Civil Service in 2014, divided in three different projects: Artistic and cultural heritage, Environmental protection of the 14

territory and civil protection and Assistance, thanks to a partnership with three local institutions.

The average age was 25 years old, and the the majority of volunteers had a bachelor's degree. In many cases the activity sphere chosen by the participants was connected to the young's interest in a specific job (81%). It is an implicit recognition of the civil service high educational value towards work experiences. Moreover, the belief that civil service allows to enter the world of work more rapidly is enough spread (62,5%), as spread as the belief that this kind of experience is important in order to understand how a working environment is running out (61,5%). 69% of interviews thinks that civil service allows to acquire specific working skills and, in the meantime, it allows to verify working attitudes. Moreover, many interviewees declare that civil service allows to develop new abilities and skills (75%), and it allows to set up significative relationships.

It is important to notice that a small salary influences considerably the civil service choice; 75% of interviewees, in effect, declares that they wouldn't have participated to this kind of announcement if there hadn't been a payment.

Regional Civil Service In Italy, some regions have activated Regional Civil Service, an additional opportunity for youngsters who want to do a volunteering experience. In these projects the engagement is about 18 hours per week and the salary of 273€ per month.

The expected activities are: • assistance and social service; • historical, artistic and environmental heritage promotion; • organisation and promotion of educational and cultural activities and activities related also to civil protection and solidarity-based economy In 2013 regional projects, 98 youngsters from Regione Veneto carried out regional civil service in 25 Institutions. Comitato d'Intesa hosted 10 young, thanks to the partnership with some local institutions 15

where some of these volunteers were employed.

As for national civil service, data are clear, and they tell us how this kind of experience in our association (and in our partner) is considered as an investment for the future, also for the working future, by these youngsters.

The average age, in this case, is a little higher (26 years old) and all the interviewees had had previous volunteering experiences (100%).

Also in this case the activity sphere chosen by the participants was connected to the young's interest in a specific job (83%). Moreover, the belief that civil service allows to enter the world of work more rapidly is enough spread (67%), as spread as the belief that this kind of experience is important in order to understand how a working environment i running out (61,5%). All the interviewees think that regional civil service allows to acquire specific working skills (100%).

Moreover, many interviewees declare that civil service allows to develop new abilities and skills (66%) and it allows to set up significative relationships (83%). In regional civil service, beside the national one, the percentage of who declares that they wouldn't have participated to this kind of announcement if there hadn't been a payment is a little lower. This difference could be explained because of the lower payment.

From civil service to the world of work In 2012 CSEV, Spontaneous Representative of civil service Organisations and Volunteers, in collaboration with Padua University realized the survey “National Civil Service experience and working contents” among all the youngsters who carried out national civil service in Regione Veneto since 2005. The questionnaires collected were 913, and the participants were 203 men and 710 women, from 16 different Italian regions. Before doing civil service 51% of respondents was student, 17% was student-worker and 12% worker. 20% answered “Other”, which includes “unemployed, intern, incidental work”. When the survey was realized, in 2012, among the 913 participants, only 16% was still student, 16% was still student-worker, 45% was employed and 23% answered “Other”.

183 young out of 913 declared that this experience “contributed 16

to a concrete work placement�, in particular 46% has found a job in the same institution of his civil service project. 14% works in another institution, but in the same field of his project, and 11% works in a private profit company, in the same field. These data shows how this experience allows to acquire specific skills marketable and recognized in working contexts different from the civil service ones. The remaining 29% works in different companies/institutions and in different fields, somebody is self-employed.

As far as Comitato d'Intesa and his partners are concerned, in 2014, 27 youngsters carried out National Civil Service. 3 of them are currently working in the same institutions where they did their civil service, 1 works in another institution, but in the same field, and 12 are employed in other company/institution doing different jobs. Among the remaining, 4 are doing other kinds of activities, such as incidental work, study, internship, 1 is unemployed and 6 haven't been interviewed. If we considered the 21 people who answered, the employed rate is 75,2%.

Between June 2013 and May 2015, 19 youngsters carried out Regional Civil Service, in two different projects. The employment rate was very high, 89,5%, the remaining 10,5% was studying or is doing National Civil Service. In particular a high percentage, 31,6% works in the same institution of his/her civil service project, and 52,6% works in an other company/institution doing different jobs.

The employment rate is 82,5% among the 40 youngsters who carried out civil service at Comitato d'Intesa and his partners, and who answered to the interview questions.

These data are indicative if compared with national data about unemployment rate registered in 2015, within the first four month period. Among youngsters aged between18 and 29, in fact, the unemployment rate reaches the 32%. In Belluno the unemployment rate referred to the same age, at 1st January 2015, is 14,52%, considerably lower compared with the national one.

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Employment rate data national and regional civil service Comitato d'Intesa 2014/2015

Employment rate data regional civil service Comitato d'Intesa 2013/2014 and 2014/2015

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IV.

YOUTH IN PERSPECTIVE OF UNEMPLOYMENT IN POLAND

We are members of Polish organizations in our argumentation, we present the problem of unemployment among young people on the plane: age, sex in different sectors of the economy The occupational situation of young people is the subject of intense debates in the European Union since 2011. In the European Parliament, in July 2013, MEP Joanna Skrzydlewska presented a report on how to tackle unemployment of young people. She pointed to the need to adapt the offer of universities to the needs of the labour market and the promotion of self-employment by developing entrepreneurship and individual talents of young people. She also spoke about the need to increase the occupational mobility of young people and to provide valuable practice for graduates. She recommended the development of informal skills by taking part in a youth exchange under the Erasmus +.

The Polish MEP's report is closely linked to the direction of EU policy.

In the framework of the new financial perspective, the European Commission recommended the member countries of the EU to lay down a system of "Guarantee for the young ", which will include an offer of employment, apprenticeship or further education. Under The example of Finland - where in 2011 83.5 % of graduates received an offer within 3 months from the registration office work-employment services in Poland have to act according to the new rules. the European Social Fund founded funds for vocational activation of young people. Employment alone is not a guarantee of stability and social security. Current language has already become the phrase " junk contracts ", which illustrates the growing popularity of flexible forms of employment: employment contracts for fixed-term contracts or self-employment. If we take into account only the percentage of young people on temporary contracts, it turns out that Poland is disgraceful the highest in Europe.

The problem in 2012 concerned nearly half of employees ( 48.6% ) aged 20-29 years.

In 2012, the EU 20.6 % of people aged 25-29 years were included in the category of people not working and not studying, or NEET (not in employment, education or training). In Poland, the percentage was 19

higher than the EU average and amounted to 22.1 %. A much larger share of persons aged 25-29 years, belonging to the category of NEET, recorded in Greece ( 37.6% ), Bulgaria ( 30 % ) and Italy ( 28.9 % ).

In the next part of our genealogy we want to focus on youth unemployment in the perspective of the whole country.

Labour market programmes comprise activities directed at reduction of the size of unemployment in a given area. In particular, there can be distinguished: training, traineeships with the employer, intervention or public works, etc.

Training means non-school educational activities targeted at obtaining or improving vocational skills and qualifications, as well as general ones necessary for performing a job, including job-searching skills.

Traineeship with an employer — means acquisition of practical skills necessary for performing work by means of performing tasks at a work place without concluding an employment relationship with an employer.

Intervention work — means employment of an unemployed person by an employer as the result of a contract signed with the starosta (the President of the powiat authorities), which is targeted at supporting unemployed persons.

Public work — means work organized for the unemployed (among others by the local government bodies, government administration or public utility institutions) for a period not exceeding 12 months REGISTERED UNEMPLOYMENT PERSONS IN THE THIRD QUARTER OF 2015 The number of the unemployed registered in labour offices at the end of September 2015 amounted to 1539.4 thousand persons (including 817.1 thousand women), it was lower than the one observed at the end of the previous quarter by 82.9 thousand persons (i.e. 5.1%), while compared to the same period of the previous year, it was lower by 282.6 thousand persons (15.5%).

Compared to the second quarter of 2015, a decrease in unemployment was observed among the population of men and women 20

respectively by 58.2 thous. (i.e. 7.5%) and 24.7 thous. (i.e. 2.9%).

Compared to September 2014, the numbers of unemployed men and women registered in labour offices also decreased respectively by 146.8 thous. (i.e. 16.9%) and by 135.8 thous. (i.e. 14.2%)the number of the unemployed was observed in all voivodships. The most significant decrease was in voivodships: Opolskie (7.9%), Dolnośląskie (7.5%), Łódzkie and Wielkopolskie (by 7.3%) and Lubuskie (7.0%). Compared to September 2014, unemployment also decreased in all voivodships.

1Registered unemployed persons and unemployment rate

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Unemployment rate at the end of September 2015 comprised 9.7% of the economically active civilian population1; it was by 0.5 point lower than in the second quarter of 2015, but it was by 1.8 point lower than in September 2014. There was still observed a very big territorial differentiation of unemployment.

The unemployed by sex, age and level of education At the end of the third quarter of 2015, the share of women in the total number of the unemployed amounted to 53.1% and was by 0.8 point higher as compared to the same quarter of 2014.

Unemployment is still affecting mainly young persons. At the end of the presented quarter, the largest group among the unemployed constituted persons aged 25-34 years – 421.6 thousand; their percentage share in the total number of the unemployed amounted to 27.4%.

Persons aged up to 24 years constituted 15.4% of the total number of the unemployed. The percentage share of registered unemployed persons at the age 35-44 years comprised 21.4%, 45-54 years – 18.2%, while persons aged over 55 constituted 17.6%. Compared to the same period of 2014, the biggest changes in the structure of the unemployed were observed for the group of persons up to 24 years old (in minus difference by 1.7 percentage point), and in the group aged 55 years and more (in plus difference by 2.0 percentage point).

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The majority of the unemployed registered in labour offices comprised persons with relatively low level of education. The two largest groups among the unemployed constituted persons with basic vocational education and lower secondary, primary and incomplete primary education (their shares amounted respectively to 26.9% and 27.2% of the total number of the unemployed registered at the end of September 2015). Both these populations jointly amounted to 54.1% of the total number of the unemployed. The certificate of completion of post-secondary and vocational secondary schools had 22.2% of the total number of the unemployed, general secondary schools completed 10.7%, while the graduates from tertiary schools constituted 13.0%.

The education structure of unemployed women was different than the structure of men, as 55.4% of the unemployed women had secondary and tertiary education, while among men the percentage share of these educational levels amounted to 35.2%.

The unemployed by sex and duration of unemployment The number of persons seeking employment for a long-time (over 12 months) amounted to 638.2 thous. at the end of the third quarter of 2015. It constituted 51.5% of the total number of the registered unemployed. The number of the long-term unemployed decreased as compared to the same period of 2014 by 147.8 thous. persons, i.e. by 18.8%. Persons staying without a job for relatively short duration, i.e. up to 1 month, constituted 12.7%, between 1 and 3 months – 14.3%, between 3 and 6 months – 13.1%, while those who were jobless from 6 23

to 12 months comprised 18.5% of the total number of the unemployed The long-term unemployment is more often observed among women.

44.1% of women registered in labour offices at the end of September 2015 had been seeking employment for more than 12 months. At the end of the third quarter of 2015, the percentage share of the long-term unemployed among men amounted to 38.5% .

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V.

SOLUTIONS TO HIGH YOUTH UNEMPLOYMENT. CASE OF CZECH REPUBLIC.

1 Introduction

Labour market is one of the most important factors of production.

Due to economic crisis the unemployment rate increased in almost every state, also in Czech Republic. Because of these problems there is an expectation about a gap on labour market, where is no equilibrium.

The mostly like effect will be the increased demand after highly qualified workers, some of the former professions will shift into totally new careers reflecting technological progress.

In this thesis, there will be written more information about unemployment rate in Czech Republic generally and we continue with youth unemployment rate and comparison to European countries. In thesis there is also analysis of main problems in Czech Republic and what are the main measures and solutions including our suggestions.

2 Czech Republic Unemployment Rate

Unemployment rate is defined most basically as the percentage of the total labor force that is unemployed but actively seeking employment and willing to work. As defined by the International Labor Organization (ILO), an unemployed person is someone who is actively looking for work but does not have a job. The unemployment rate is a measure of the number of people who are both jobless and looking for a job. This measurement is considered a lagging indicator, confirming but not foreshadowing long-term market trends.

Unemployment Rate in Czech Republic decreased to 6,1% in March from 6,3% in February of 2016. Unemployment Rate in Czech Republic averaged 5,6% from 1990 until 2016, reaching an all time high of 9,6% in January of 2004 and a record low of 0,09% in February of 1990. Unemployment Rate in Czech Republic is reported by the Ministry of Labour and Social Affairs.

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Source: http://www.tradingeconomics.com There are two groups that are problematic, the young after leaving schools and people over 55 years of age. Amongst the young, the ones with lower educational attainment are especially vulnerable.

The numbers for old seem low because many take preliminary or disability retirement.

- 15 – 24 years - 25 – 29 years - 30 – 34 years - 35 – 44 years - 45 – 54 years - 55 and more

Regional unemployment The area around capital has least unemployment (Prague and Středočeský kraj). Especially problematic are the old mining regions in northern Bohemia and Moravia-Silesia. While there have been quite a few attempts to remedy this, so far there was little success. Generally speaking, the farther away from big cities, the greater the 26

unemployment rate is, this is made worse since Czechs are reluctant to move to get work.

3 Youth Unemployment Rate

Youth unemployment is the unemployment of young people, defined by the United Nations as 14–28 years old. An unemployed person is defined as someone who does not have a job but is actively seeking work. In order to qualify as unemployed for official and statistical measurement, the individual must be without employment, willing and able to work, of the officially designated 'working age' and actively searching for a position. Youth unemployment rates are historically four to five times more than the adult rates in every country in the world.

Youth Unemployment Rate in Czech Republic is expected to be 9,5% by the end of this quarter, according to Trading Economics global macro models and analysts’ expectations. Looking forward, we estimate Youth Unemployment Rate in Czech Republic to stand at 8,7% in 12 months’ time. In the long-term, the Czech Republic Youth Unemployment Rate is projected to trend around 8,3% in 2020, according to our econometric models.

Source: http://www.tradingeconomics.com Comparison to EU According to this grafics we can see that Czech Republic deals with unemployment really well, because our unemployment rate is really low in comparasion to EU countries.

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Problems with unemployment of young people

4.1 Problems of graduates The probability of unemployment of young people between 15-34 years old was in 2008 around 19,1 %. Two years later it was 30,8 %.

Czech statistical office divides young unemployment people in 3 groups. The first group includes young people with university education and the probability of unemployment in this group is 15 %. Тhe second group includes young people with secondary education and the probability of unemployment is around 30 %. The last group includes young people with primary education and the probability of unemployment reaches 80 %. The highest possibility to find a job has the young people from industrial, engineering and medical sector. On the other hand, the lowest possibility of finding a job has the group of young people from gastronomy and tourism sector. There are also differences between the regions in the Czech Republic. The worst situation is on the north of the country where every third young person is unemployed. Compared to that, the best situation is in the capital, Prague where only every 20th young person is unemployed.

4.2. Lack of qualified graduates In 2014 and 2015 the Czech economy was recovered, which is connected with decreasing unemployment. The Czech economy is built on industry and international trade, so many foreign companies decided to enter the market. The main problem is that in the country there is not enough qualified graduates in these fields. The reputation of technical universities is really low and students usually prefer social or economics studies. The technical universities are not connected with the companies from the field and there are not enough internships for students to gain the experience. Also the equipment used at schools are usually old fashion and far away from the ones used at reality. We can also find a problem with a languages skills of the graduates and the poor level of education system of languages. The year 2015 was decelerated as a year of industrial and technical education to help the students choose the right field of studies.

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4.3 Unwillingness to hire graduates The companies do not usually hire graduates because of the lack of work experience. This problem exists in almost every European country and the solution could be to offer them more internships even the not paid ones. The companies prefer to hire graduates with experience in the field gained during the studies. But every previous experience in working process is important. The absence of experience can be replaced by active participation and interest in the chosen field.

The good knowledge of foreigner languages is appreciated as well.

Nowadays one language is not enough so the graduates should actively speak in at least two languages in order to have an advantage and be more competitive.

The problem is not only about the experience, but also the graduates have unreal expectations about future salary, working hours and about the working process in general.

4.4 Another Causes of Youth Unemployment There more causes of Youth Unemployment such as:  Imperfect labour market, imperfect information about job vacancies.  Insurance and unemployment benefits (social security benefits) – people according to this benefits, they rather choose to be unemployed, because they will receive a money support (voluntary unemployment)  The law about minimal wage – if the minimal wage is higher than wage on labour market, it will create a situation when the supply is higher than demand and there are more unemployed people.  Labor union and collective negotiation could be the main force how to increase the wage which could be the main factor to dismissals because employers have to cover cost from higher wage in their companies.

5 European Measures Against Youth Unemployment There are many measures against youth unemployment that seems to be really effective.

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 Youth Employment Initiative – Introducing a guarantee for young people, improving the quality of internships, launching European Alliance for apprenticeship and transforming EURES.  The Youth Guarantee – Ensures that all young people under 25 get a concrete offer within 4 months of them leaving formal education or becoming unemployed.  EURES – European Employment Services – free movement of workers within European Economics Area and Switzerland  ERASMUS plus – Support Programme countries effort to efficiently use the potential od Europe’s human and social capital 6 Active Labour Market Policy in CR

Youth Guarantee Implementation Programme The text of the Youth Guarantee Implementation Programme has become a key strategic document of the Czech Republic for the support of young people in the labour market. With this programme the Czech government guarantees to offer a job opportunity, further education, training or internship to every young person under 25 years within 4 months after becoming unemployed, completing formal education or dropping out of the formal education system. Measures of the program have the character of both prevention, particularly through the development of career counselling, and remedy, facilitating the entry of young people into the labour market.

The first solution, which could help with the problem of young unemployment people is special programme in Czech Republic, which is called Youth Employment Initiative. This programme is primary targets on young people without job, education or requalification in the regions with the highest percentage of young unemployment people (25 %). This Initiative is financed by European Union and in 2015 the Czech Republic received aroud 13 millions eur.

The Initiative includes requalification’s programmes, tax concessions for companies, which hire young people and also consulting for schools and universities with cooperation with labour offices.

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According to our opinion this Initiative could help a lot with unemployment of young people, because the most important problem, which the Czech Republic has to fight with is less qualification and practise. Tax concessions are useful for companies and for young graduates it is a way, how to gain practise, which is neccessary for future jobs.

7 Our suggestion to the problems In our opinion we think that Czech Republic deals with unemployment really well, because we implemented European Union.

Measures against youth unemployment seems to be really effective (Youth Employment Initiative, The Youth Guarantee, EURES, ERASMUS plus). Also our program of Active Labour Market Policy is amazing tool how to help youth to find a job. The best solution to youth unemployment is requalification program, where every person can find a new job that is not connected to the previous education. Another great tool is donation from Labour Office to start an entrepreneurship. Labour Office pays for all costs from starting a new business but only for 6 months. The amount of money is limited according to percentage of unemployment people in a particular region.

We believe that main problem is our educational system, because youth mostly cannot decide what to do in the future in their career. We suggest that is important to teach about personal development and also about possibilities of European Union programs and our Active Labour Market Policy. For example, there is a youngster who has a problem with self-confidence and this person doesn’t believe that can start an entrepreneurship. If there is some personal development program, which will be free for this people, it can help them to rise self-esteem to start own business. Or this program can help with communication skills, also how to improve emotional intelligence (how to deal with negative emotions arising from problems on our labour market), or with stress management.

Another suggestions could be for example to lower the taxes of this problematic group of people, or to make a labour market more flexible for example to arrange part-time jobs.

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VI.

YOUTH UNEMPLOYMENT IN LITHUANIA

Introduction

Youth unemployment is at the center of interest of European Union (EU) and European Commission (EC). There is a good reason for that. Did you know that around 5.5 million young people are unemployed in European Union? Imagine that in a group of 5 of your friends who are under 25 one of them (maybe even you) is unemployed even though he or she is able to work. Youth unemployment in 2013 in EU on average was 23.3%. Situation in Lithuania was a bit better as it was 21.6%, however these numbers should be much lower.

What is more, another problem is that young people do not have proper education in order to fill available positions. This is a result of low geographical mobility, not equal monthly payments and lack of educational training/ consulting. According to Eurostat until 2020 there should be 73 mln. workplaces due to retirement, however it is still not clear if there will be enough people with proper education and skills to fill these places.

The definition  The youth unemployment rate is the unemployment rate of people aged 15 - 24 as a percentage of the labour force of the same age.

An unemployed young person is someone who is:  is not studying or doing any training;  without work during the reference week;  available to start work within the next two weeks (or has already found a job to start within the next three months);  actively having sought employment at some time during the last four weeks.

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Situation in Europe

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Youth Unemployment in Lithuania Overview  ~1,15 bln. EUR lost every year due to youth unemployment  Some statistics say that all unemployed ant not studying youths cost Lithuania around 1,07 of GDP  Around 60% of Lithuanian registered unemployed youths have no professional readiness, around 50% - any working experience, around 10% already have higher education Youth unemployment in Lithuania grew rapidly during the crisis. In the third quarter of 2011, according to Eurostat, Lithuania had one of the highest unemployment rates in the EU for the under-25-year-olds (after Spain, Greece and Slovakia), reaching 31.1 per cent. The high level of youth unemployment is due also to the country’s overall economic situation, unemployment and employment levels, retraction of services and industry sectors, inability to cope with technological changes, low investment and standards of living. Further, educational programmes do not take into account the needs of the labour market.

Each year, university graduates and thousands of new specialists hit the labour market, and many of them turn to the Employment offices for help to find a job. In 2015, situation of youth unemployment is much better and is the rate is lower than EU average.

Main issues: worsening of working conditions, increasing workloads, temporary contracts, insecurity and low/decreasing wages, sometimes unpaid wages and unclear wage calculations. It is hard to find a decent job when you have no work experience. Young people are often obliged to sign temporary contracts as there are not many other alternatives offered by employers, who do not propose long-term employment to young people. These short-term contracts give employers the flexibility to fire employees without a formal reason.

This also creates a situation where banks are not willing to provide financial loans to people in temporary employment. The young people interviewed said they found having a temporary contract had a huge impact on their borrowing ability. Moreover, when employers need to cut the workforce, young people are the first to be fired, since because they have worked for a shorter time their redundancy payments will be lower.

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Measures taken To support youth employment, the Lithuanian Labour Exchange has established branches called Youth Employment Centres. The main task of these centres is to promote young people’s integration into the labour market, to assist them in gaining a better understanding of the social environment and the labour market. Its services are free of charge, and registration is optional. In brief, Youth Centres operating throughout Lithuania: • provide information and counselling for young job seekers; • organise informative events and practical training • assist in preparation for job interviews, how to be motivated in searching for a job • promote entrepreneurship • provide professional orientation tests • provide information about admission to higher education institutions Governmental and EU-funded projects “Youth Employment Promotion”:  Project „Jaunimo užimtumo didinimas“ (“Youth Employment Promotion”)  2012-2013  6600 youths under 29 had a chance to work in different enterprises. At the end of the project, 5600 of them already had permanent contracts  Most demanded employees: managers, administrators, accountants  Project value: ~5,8 mln. EUR “Support for employment”  Project “Pagalba įsidarbinant” (“Support for employment”)  July 2013-September 2014  Ability to get work practice directly in enterprises and therefore quicker integrate into labour market. This is important in order to give students work experience after studies 37

 Around 8 000 unemployed youths participated, 1 500 of them – long-term unemployed  6 400 participants used partial subsidies in order to get a job. 1 600 used opportunity to get working skills through various practices  Coordinated by 10 territorial labour exchanges  Project value: ~9 mln. EUR Subsidies policy: at least half year employer gets a subsidy equal to 50% of young employee’s salary. Subsidy can’t exceed the size of two MMS (MMS = 350 EUR). Additional 20% subsidy for employers for in-job tuition Youth organization LABOUR (Jaunimo organizacija DARBAS) Youth organization LABOUR (Jaunimo organizacija DARBAS) is one of the biggest youth organizations in Lithuania. Its goal is to develop young leaders in Lithuania and involve them in active political and social activities. Organization was established in 2003 and on 23rd November celebrated its 12 years of activity. Youth organization LABOUR has 62 subdivisions all around Lithuania and joins together over 3 500 members aged 16-29 years. Unlike most of the national youth organizations, it has not focused its activity on the country‘s largest cities, but effectively functions in the periphery as well. It allows organization reflect versatile viewpoint of Lithuanian youth. Youth organization LABOUR has developed its members to successful leaders in political and other fields, therefore is well known throughout Lithuania. The members actively participate in other organizations’ activities as well, where successfully represent Youth organization LABOUR. However, the problem is that some young people lack of motivation, they are afraid to step out of their comfort zone and don’t want to use the possibilities around them. In order to tackle this problem certain actions might be done: in school kids might have a subject where they would be taught about voluntary work, mobility programs or various EU initiatives; meetings with people who have already enjoyed the possibilities of these initiatives and are able to tell successful and 38

inspiring stories. What is more, more innovative companies are emerging in Lithuania. A lot of non-profit organizations are increasing awareness about good practice, some examples: VšĮ Inovacijų biuras, VšĮ Versli Lietuva, Education Exchanges Support Foundation and of course you can always find some information in web pages or information desks of your institution, university or school. The easiest and the fastest way is just to go on-line and type in what you are looking for, what information you need and then start your adventures.

New strategy to be adopted in the near future:  Youth guarantee initiative (not yet implemented): aims to provide a job, offer to study or do internship for every U-25 person who has graduated and doesn’t have a job in the term of 4 months

VII. YOUTH UNEMPLOYMENT IN ESTONIA. METHODS FOR SLOVING THE PROBLEMS.

Let’s start by letting you know, that Estonia entered the top five European leaders: the level of youth unemloyment is smaller than in Spain, Lithuania, Latvia and Slovakia, where the situation is much worse. As you will see, we shall identify the main and major causes of unemployment in our country. Also we shall divide them into parts. The first reason is the lack of job positions, the second is the lack of qualification, the third one is the orientation only to the western market and bad relations with the East, and the fourth reason for unemployment is the language barrier. Let's have a look at everything in order.

1. Lack of job positions.

There are several reasons for the lack of work in Estonia: 1.1. Crisis. Why youth unemployment gets so high in Estonia? One of the main causes is the crisis. Let’s say, in the construction sector, where many young people are employed, the crisis has had a catastrophic impact.

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1.2. Closure of enterprises. As in any other industry, the enterprise work depends on the world market. Recently many enterprises collapsed because of the changing prices on the world market. For example, not long ago shale plant “Viru Keemia Grupp” went out of business, due to the decline in petroleum oil prices, for the extraction and production of oil shale became unprofitable.

1.3. Structural unemployment. The so-called structural unemployment (is a form of unemployment caused by a mismatch between the skills that workers in the economy can offer, and the skills demanded of workers by employers (also known as the skills gap).

Structural unemployment is often brought about by technological changes that make the job skills of many workers obsolete, and can be addressed by either providing better information to workers who are structurally unemployed or by retraining these workers to fill new jobs that are in higher demand in the economy. It’s not so much personal, as feasibility base. It’s not so clearly depend on human’s wishes and his motives of labor behaviour. For example, in stores we already have selfservice machines, what means, that cashier job in a short time will not be in demand.

According to the forecast for 2022, the following occupations fall under the threat of extinction: • • • • •

Farmers Employees of the postal service Data entry operators Operators of sewing machines Postmen

1.4. Empty promises. The Minister of Economy and Infrastructure Kristen Michal promises, that in the near future in the northeast part in Estonia new workplaces will be created around 3000. And this is the problem. We have only promises, but nobody keep them, and if promises stay unfulfilled, people lose their last hope, that something can go better.

1.5. Competition. In Estonia we don’t have much sought-after professions, therefore those, who wish to apply on the same place are many, hence the competition is too high.

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And now the Solutions We are convinced, that our state should create new workplaces.

There should be a state program to create these places. Otherwise there will be a large number of high educated unemployed.

1.1. Economic growth around the world. While economic growth around the world wouldn’t start growing, including in Estonia, solving the problem of crisis in the country can’t be exist.

1.2. Attracting business owner to criminal responsibility. We offer to attract business owner to criminal responsibility in case of closing enterprises and non-payment of salaries to employees at the right time.

(As a result, people remains not only out of work, but also stay without money.)

1.3. Qualification increment. In time of development of structural unemployment, people need time to retraining, to increase their qualifications, to get new profession, and only in this case they can get a job. Progress doesn’t stop, that’s why the state must be ready to allocate funds to improve the skills of workers.

2. The lack of qualification.

Reasons 2.1 Reluctance to study. Young people do not want to study, in most cases, young people have other troubles besides study (problems in the family, among friends, in relationships, familiarity with the world, the definition of “My-self”.

2.2 Lack of experience. Employers are often reluctant to take workers without work experience. And usually young people don't have any experience (but then how they can get a job?)

2.3 Young people do not agree with the conditions. Young people with little knowledge in the area of work experience, go getting a job, convincing their own requirements. They look at the world in pink glasses. Youth people are too confident or not confident enough to themselves. In the first case, the youth because its principles do not agree with the employer (such as financial issues, they want more than the offer), and the latter are simply too afraid to try. In both cases, there 41

is no work and youth are looking for other solutions, and one of which is emigration.

2.4. Emigration. In Estonia and some other countries, the statistical decrease in youth unemployment is often a result of emigration and a general decrease in the number of young people. That is, that the potential unemployed simply leave the country. This struggle for workers cannot be called successful.

Solutions 2.1 Motivating students. It is pretty obvious that we need to improve the socialization of young people (to conduct individual interviews, lectures, tests to determine the identity, choice of profession, better understanding ourselves and what suits us), but what are the possibilities for this? And who wants to do this kind of work? The vast majority of young are hard-working and creatively-minded guys. They are those who are looking for work these days. They are ready to work and to do volunteer in charitable organizations, just to give strength and energy for the benefit of society. It is a pity that the problems of youth employment in Estonia seriously engaged in various non-profit organizations, when government does not even lift a finger.

2.2 Providing practice. If young people within four months after graduation were unable to get a job, the European States should pay them retrain or find a place trainee. Reforming the education system, so that it can respond flexibly to the labor market needs. Programming changes, aimed at the acquisition of the necessary skills workers should include the establishment of the base for continuous education of the greatest possible number of students; expanding opportunities for training of workers throughout their lives to enable them to adapt quickly to technological innovations; binding of training programs to the trends in the industry and professional markets.

2.3. Set boundaries. Informing young people in advance that they were going to be employed, already knowing their capabilities. The economic activity of young people can be encouraged by offering them more flexible employment conditions, the establishment of the

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minimum wage is lower than for adults (about 80% of the adult minimum wage).

2.4. Improving working conditions in the country. It is necessary that young people need to have a desire to stay in Estonia, see in this country prospects, their future, because the main thing for probably everyone , not only for youth is a permanent job, regular income to be able to equip yourself and your family. If do not deal with young people, they will either leave the country to cast their forces and intelligence community to those countries which appreciate human personality, or, what is more sad , they will fall into a so-called “group of risk” start contacting with the underworld, or find solace in drugs. And it will cost society much more expensive than the most expensive measures for young workers places.

3. The orientation only to the western market. Bad relations with the East.

Reasons 3.1. Unidirectional policy. That is to say, what we see is the absence of political parties, which maintain relations with the East. All the rule parties support only one line and it’s directed to the West. We don’t have political party in power, which would defend the interests, that policy was directed to the West and to the East. The problem is that Estonia doesn’t want to have anything with Russia, and in vain, because there is a benefit, for example, the same transit. Due to transit which took place before sanctions, workers at the port had the work. The more Russian goods transports through Estonian ports - the more jobs people have.

3.2. Sanctions. And a little bit about sanctions of course. When the EU introduced sanctions against Russia, Russia, in turn, introduced theirs.

And that's why dairy products, meat products, vegetables Russia stopped buying from Estonia. It affects Estonian farmers, because in the past they had a sale, they could produce a product and sell it to Russia, but not now. Europe buy this product either.

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Solutions 3.1. Create a multi-vector policy. In our opinion, it would be reasonable to be created a multi-vector policy. It would be better if orientation wasn’t only on the West, but also to the East, because it’s silly not to cooperate with its next door neighbor. And here would be export of goods, economic profit and new jobs.

3.2. Improving relations with Russia. And based on the foregoing, we believe that the establishment of relations with Russia will improve the situation in Estonia. Our country needs a review of their political views.

4. The language barrier That is, the division into Russian and Estonian people. Meanwhile, for example, in Estonia, the unemployment rate among Estonian youth is 1.6 times lower than that of the Russian youth between the ages of 15 and 24 - Non-Estonians, 21% of them are unemployed.

If we compare the Russian-speaking residents of Estonia who do not speak the language, with the young, who know the Estonian language very well, it was obvious that people who don`t know it, are paid less and its and it is more difficult to find a work.

Reasons 4.1. Poor knowledge of the Estonian language. In the analysis of one of the research, the study found that many Russian students admit their poor command of state language and that children have many problems with their studies, they perceive the transition to Estonian language as the state pressure. What is the transition to the Estonian language mean?

The thing is, that from 2007 had been introduced the program of development of the Estonian language among Russian-speaking students. In 2011, it entered into force and still is a fundamental strategic document, which should help to ensure the functioning of the Estonian language as the state language in all areas: of learning the Estonian language, its research, development and protection and by that contribute to the preservation of the Estonian language in the future.

4.2 Loss of interest Russian-speaking students in studying. Children lost interest in their studies due to the stress created by the sudden 44

transition to bilingual education. Marks are deteriorating, the lessons are braking, unexecuted homework- this all lead to lower student performance.

4.3. Russians don’t see their future in Estonia. Students don’t know who they want to become, where they come to study further, and not sure that they will pass the exams. The impact of all these factors leads young people to the fact that the majority of the Russian-speaking children have no idea about the future, or do not see it in Estonia.

Solution 4.1. Better program of language study. The study program takes insufficient account of the fact that Russian schools actually need more time for learning foreign language, languages should be taught more effectively and also the Russian in Estonia schools. For example teacher should pay more attention to the students, to get to know about their language level.

Conclusion Including the facts that we have said before, it is clearly understandable that only the government can solve this problems. As we underlined in our presentation, the main problems and resolutions of the youth unemployment in Estonia, the government should pay attention to our youth, because young people are the future and the power of our country. We hope that our message will be helpful.

VIII. WITH EUROPEAN AWARENESS AND TOLERANCE TOWARDS YOUNG PEOPLE AS A VULNERABLE GROUP IN THE LABOUR MARKET

Youth unemployment has emerged as one of the sharpest economic and social problems of the European society. In the European Union there are 14 million young people who are unemployed and virtually excluded from society. They cost € 153 billion a year, which represents 1.2% of the GDP of the EU. The study by the European Foundation for the Improvement of Living and Working Conditions (Eurofound) show that the unemployment rate among young people 45

aged between 15 and 29 years is at a record high. Those 14 million who not only do not work but are also absent from the process of education and professional training, also have a negative impact on the level of labor productivity, which is why three billion Euros are lost every week by the 27 EU Member States.

Employment of youth occupies an important place in the field of labor, and the present and future development of the economy and society as a whole depend on the attention paid to it. Young people are the greatest opportunities for labor mobility and adaptation to changes in the economy and society.

In principle, this contingent of the workforce is characterized by unstable behavior in the labor market due to the variable professional orientation of young people and their socio-professional uncertainty.

The situation is compounded when the influence of rapid changes in political and economic conditions in a country are considered. This leads to increasing difficulties in self-determination of young people, including professionally.

Young people are the most emotional and mobile group in the labor market. They have unstable life positions, unconsolidated work habits, and lack of work experience and expertise. There are jobs where monotony and lack of opportunities for creativity and initiative as well as opportunities for career often give rise to a desire to change jobs and a search for alternative employment. Because of the saturation of the labor market of more competitive groups, the youth become clearly a disadvantaged group. At the same time young people are the most promising category of the workforce. Yet unformed as a subject of work activity, they are most receptive to change, they are able to change their labor functions often, have huge opportunities for professional development, and the longest career road is ahead of them.

In this sense, today in the EU it is extremely important to determine the scale of employment and youth unemployment, to predict the dynamics, and to find ways to provide effective assistance to young people having trouble finding work. This is because: first, young people are about 30% of the working population of the Union.

Youth unemployment is due to different reasons and has different forms of manifestation in different countries. The reasons why young people get into disadvantaged positions on the labor market can 46

generally be divided into two groups. In the first group are included factors, applying to all groups of the working population - the onset of recession and the general economic downturn, low education, inadequate vocational qualifications and the mismatch between available skills and labor market requirements. The second group of factors is pertaining to specific characteristics mainly of young people: such as the lack of experience, attitude and motivation of labor behavior, social immaturity and inconsistency, striving to rapidly achieve a high standard of living, etc.

An important stage of socialization of young people is the transition from school to work, but education systems in many Member States are not yet able to provide young people with qualifications corresponding to the requirements of modern production. School still does not provide enough practical knowledge of students with which to make an easy transformation from a trainee to an independent and actively functioning economic entity.

Education in general is more conservative and difficult to adapt to new business needs. However, it should be noted that in recent years many EU countries are trying to make significant changes that respond to major changes in the economic and social environment.

One of the structural problems is the mismatch between the powers that youth possess and the demands of the labor market. This is the imbalance between the education system and the needs of the economy. That is why many highly qualified young graduates with specialized secondary or higher education, as well as a large number of low-skilled (low educational level) youth cannot find realization on the labor market. In other words, businesses need specific staff, but society offers them something quite different, in the quality of knowledge and skills for practical implementation. The roots of this disparity must be sought after in the decisions and actions of states and universities who plan future labor resources, young people themselves in choosing a profession, as well as vague and poorly researched needs of employers.

It is still too weak a link between education and the needs of the labor market. The choice of specialty which the youth choose to study is often made based on vague ideas about future work, not as a result of analysis on the real situation on the labor market, which is what young people can do themselves. This is the main reason for the formation of specific 47

groups of professions that are beginning to occur with relatively high frequency among unemployed youth.

Before completing secondary and higher education, those wishing to start even temporary work find the problem of lack of experience.

This is another major cause of difficult labor realization of young people. The majority of unemployed young people have never worked, i.e. they are just entering the labor market and have the necessary contacts and information about finding a job. They have acquired theoretical knowledge in the study of their profession, but cannot implement it because of a lack of practical work experience in most cases. This makes them uncompetitive and put them at a disadvantage in the job search. The crisis is forcing employers to create fewer jobs and look mostly for people with work experience. Considering their lack, the required experience, employers are reluctant to employ young people because they have no desire to spend any money, nor the time to train them. This dooms the young people to prolonged job search and pulls them into a "Vicious cycle" - not employing them because they have no experience, but cannot gain experience by not being employed.

The lack of practical experience and professional contacts creates difficulties both in finding a first job and when trying to switch from one to another type of employment. Lack of experience has an impact on the process of job search (habits to monitor listings, personal interviews, participation in competitions, seeking the assistance of specialized state institutions, agencies, etc.).

The lower the skills of a person, the greater the chance that potential income through labor will not be high enough to motivate full entry or re-entry into the labor market. Very often, youth unemployment is directly related to certain social groups such as ethnic minorities, dropping out of education (low education, respectively) and residents of poorer and isolated areas. As a result of the cumulative effect of these characteristics and the above factors leads to the reduction of labor and social mobility among young people. This means that they cannot reach potential employers and / or to change their place of residence and social status. Often such a development of the circumstances leads to the fact that young people fall into a state of strong dependence on social welfare systems. The lack of opportunity for the procurement of labor income in youth years may be the reason 48

for the premature termination of the participation of one person in the educational system. The net effect of prolonged exclusion from the labor market inevitably deepens social exclusion, which is closely associated with the risk of falling into poverty. Dependencies between a number of macroeconomic indicators and the proportion of the poor shows the most clearly expressed (albeit modest in statistical terms) correlation between the employment rate and poverty level. This means that employment is a basic precondition for overcoming the problem of low income and consequently the risk of social exclusion.

At a time of general economic downturn and declining turnover of enterprises, young people are often exposed first to the risk of losing their jobs. Even if they start work, young people are at greater risk of unemployment for possible cuts - they are "newbies" which employers release first. The threat of job loss forced them to accept unfavorable conditions imposed by employers. Often the salary they receive is significantly lower than normal or work for the minimum wage set for a given country. The reason is that the pursuit of cost optimization of an enterprise invariably passes through raising the productivity of labor, which normally aims to keep the experienced staff. In addition, usually shrinking turnover of an enterprise leads first to limit the hiring of new employees and only subsequently to the reduction of existing ones.

Investment in young people is an investment in the future, but often irrelevant to the ability of an enterprise to survive in times of economic turmoil. Lower labor productivity of young people is mostly caused by the already mentioned lack of practical experience, but also from the mismatch between business needs and the quality of education.

Meanwhile, in addition to it there exists an attitude of having additional costs arising for employers who hire young staff, especially when it comes to people who have not worked before in a particular sector or in general. These circumstances often require training processes in the workplace, which are related to expenditure of time, effort, and often material resources of the employer. If the work of youth is directly related to current or potential business partners and clients of the employer, the latter assumes known reputational risk hiring young frame. In the field of manufacturing, where workers often have to deal with expensive and complex equipment, there is an increased risk of scrapping production, which requires constant supervision and 49

assistance from more experienced workers. All these factors affect the final assessment of labor productivity of the young worker negatively, which means that in order for him/her to get/keep a relevant position, the employer must consider that the benefits at a certain period of time may not exceed the necessary costs. In the event that the initial stock of skills is inadequate and the employer considers that there are insufficient preconditions for further improvement in labor productivity in the young candidate, the latter does not get work. Labor costs play a direct bearing on that assessment, whose minimum threshold is determined by the state through the level of the minimum wage and the level of minimum insurance thresholds for individual economic activities. The risk of creating scrap production as a result of cutting costs of training are particularly high in the field of manufacturing, since workers often have to deal with expensive and complex equipment which requires constant supervision and assistance from more experienced workers. The main reason for this are outdated methods of training of specialists and lack of modern facilities where they can gain initial experience. Given this and considering the declining quality of higher education, a significant part of the graduates take positions that require secondary or lower education. A number of regulations and policies on the labor market also affect the competitive power of young cadres. For example, collective agreements in various sectors and enterprises keep working staff who do not meet the needs of employers and at the same time stop the entry into circulation of younger and often more promising ones. In times of economic turmoil, when to the choice between cutting an experienced worker and hiring an inexperienced young person is added the obligation to pay high compensation to the laid off person, this additionally prevents the young person from starting work in the enterprise. Moreover - in times of crisis, upon leaving the education system the youth are placed in a situation of increased competition due to an inherently a high number of unemployed.

Youth participation in undeclared work can also be seen as a specific factor that is related to their ability to find work. Many young people work in the "grey economy" without a contract, irregular working hours, etc. Because of these vicious forms of employment on the one hand young people succeed in gaining experience and building 50

contacts as well as to ensure to receive a higher net salary than that, which they could potentially get in the formal economy. Meanwhile, the continued application of undeclared work could have negative longterm consequences on the future level of income (deprived of security and pension benefits, and accumulation of officially recognized service), future professional development and access to credit. Due to their professional and social status, young people are more easily persuaded to enter into informal relations or move from regulated to unregulated work under such pressure from the employer. Thousands of young people, losing their jobs, are deprived of the possibility to receive unemployment benefits.

Another problem is that many employers consider a disadvantage of youth the lack of work habits, inability to work in a team, excessive emotionality and unsustainable behavior, the tendency to frequent departures, i.e. all that speaks of social immaturity of person and lack of socialization in the society. Young people tend to change their workplace fairly often to find a position that most fully satisfies them.

This is a natural consequence of their social status and the ability to rely on financial support from parents / relatives, as well as the typical age factors such as frequent change of personal interests, change of residence, need to reconcile work and education, and others. The influence of stereotypes of this kind is large-scale and long-lasting. This creates a discriminatory attitude towards young people into the labor market. Meanwhile, employers often do not appreciate such advantages of youth as modern education, flexibility, adaptability and others. On the other hand, many young professionals do not know how to look for work, to negotiate with employers and are not active in resolving the issue of their employment.

The fragile position of youth in the labor market can be explained by their higher participation in sectors that are characteristic seasonal employment. These are hotels and restaurants, some types of services, construction and agriculture.

Another reason is the contradiction between the high demands of employers on skills and knowledge of staff, on the one hand and the actual dimensional structure (respectively, needs) of the business on the other. Small and low-tech companies that have limited opportunities to recruit staff expect them to possess competencies and capabilities in 51

several areas. Another reason is the mismatch between the needs of specialized personnel and inefficient ways for their selection. Most often, recruitment or occupation of a workplace happens "by acquaintances."

This set of factors determines the higher unemployment rate, which young people have in comparison to other age groups.

Although periods of temporary unemployment are something common in young people, a number of factors in their future economic and social life may depend on their duration. Unemployment and underemployment among the young generations leads to many serious economic, psychological and social consequences.

The economic consequences are similar to those which give rise to total unemployment. For the individual they are associated with the loss of income, limiting of financial resources and the deterioration of living standards. In terms of losses public losses, they limited to the social benefits to be paid from the budgets of the countries, lost revenues from tax on income from social security contributions, and insurance payments for medical services, pension funds and others. The highest price in unemployment is incomplete use of available labor resources, leading to a decrease in the volume of gross domestic product (GDP) and economic growth opportunities.

Under-utilization of labor resources and allowing high levels of unemployment are a serious problem for any economy.

Besides economic consequences, prolonged standing in the ranks of the unemployed leads to deskilling of the young workforce. The loss of skills or omission of the possibility of their acquisition is one of the major risks that are associated with youth unemployment. This is especially true for young people with lower education, but may be a factor in those with a broader profiled education, but no well-developed qualities in a narrower area. When it becomes possible for these young people to join the group of employees, the need for considerable funds for their further training or retraining arises in order to recover or adapt their competencies and enhance their competitiveness in the labor market. In many cases, however, after completion of the courses for training and retraining of unemployed youth, only temporary employment is provided, and thus the costs incurred for these courses

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themselves are economically unjustified, and the young people disillusioned.

In this sense, the economic problems are intertwined with psychological elements. Unemployment in the beginning of work activity often breaks the hopes and ambitions of young people. A sense of inferiority covers them and they fall into depression and despair.

Deprived of employment opportunities and personal income, they lose their independence, confidence and sense of security. Not seeing perspectives, they lose motivation to continue their training. The longer the period of unemployment continues, the more serious are the consequences for productivity and personal motivation and so-called strength of the person. In the long run this, combined with a generous social system increases the risk of falling into the so-called "unemployment trap" in which people consciously prefer to retain the right to receive social assistance to the possibility to enter for the first time or re-enter the labour market.

The already targeted trend of loss of skills and competitiveness due to periods of prolonged unemployment leads to a further reduction in potential income and consequently to a reduction in the difference between the resources to which the person would have access to if he/she had applied effort and those received because of their Social status. In this case the person does not appreciate the benefits of their labor compared to the income they receive, but compared to the difference between what he/she receives as unemployed and what they would have received as a salary.

Labor integration of young people takes place in conditions of contradictory and ambiguous structural changes in the political, economic, social and spiritual life. And since young people are a contingent, heterogeneous in age, educational and professional level, they need a special approach in solving the employment problem. High unemployment among young people is a very serious problem, and is a result of still undigested psyche, excessive ambitions of young professionals and adolescent minimalism. It leads to deepening poverty and financial instability for young families as a result of which they have more divorces, abortions, reduced fertility, an increase in the number of homeless and abandoned children, orphans and disabled children, etc.

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Reduction of social security and inadequate assessment of youth work help to strengthen the emigration attitudes (mainly in young people from Bulgaria and Romania), causing young people to leave their countries. Uncertainties, disappointment, frustration, poverty, lack of conditions for professional realization are the main factors causing an exodus of thousands of young people. Emigration is seen by young people as a rescue from poverty and an opportunity for professional realization. This leads to a "brain drain" and the national income of the poorest countries in the EU going to stronger economic countries.

An adverse effect of unemployment is the development of a number of economic and socially unacceptable phenomena. The low standard of living and social insecurity awaken interest in alternative forms of employment in the informal economy, undermining interest in education. The criminogenic situation in the country complicates the number of crimes increases, alcoholism and drug abuse flourish, S.T.I.’s and other diseases increase, life expectancy decreases, mortality increases. All this leads to degradation of nations.

High levels of youth unemployment show that people need to work even harder to overcome this unfavorable trend, because underuse of this potential has a negative impact on economic growth in the EU. There is a need of effective monitoring and periodic evaluations of the effectiveness of the measures and programs to improve flexibility and efficiency in resource allocation and tangible results for the benefit of young people and society.

It is clear that young people are the future of European society.

This implies that they be tolerated, investments in their training be made, they receive an equal start with the other groups on the labor market, they be provided with a future and be stimulated to work.

Urgent and comprehensive measures to address this important societal issue are needed.

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IX.

YOUNG PEOPLE, YOUTH EMPLOYMENT AND EMPLOYERS

The youth unemployment in the EU is still defined as very high.

Millions of young people, citizens of the countries which are part of the EU, neither work nor study. There is a mismatch between offering and searching for job on the labor market. The reasons generally are lack of demanded skills and abilities, limitations of geographical mobility of young people or improper payment.

The difficulties that accompany the first steps of young people on the labor market, as well as obstacles in finding a first job are related, firstly, to lack of information and contact between young people, especially those who come from families without substantial financial and social capital. Secondly, young people do not have the skills that are needed for the working positions. Last but not least it is the lack of experience.

The road that leads to solving these problems in this area are discussions, contacts and close collaboration between education and business to be reached easier transition from education to youth employment and entrepreneurship and realisation of the potential of youth workers. For example, determined step towards concrete positive results from the current government would be the realisation of the idea for support from private and national funds of innovative youth entrepreneurial ideas and projects.

At the same time, employers and businesses form not less important part of the challenge called youth unemployment. The following situations can be indicated as possible solutions to reduce youth unemployment by the businesses: - investments in the development of information resources for young people; - participation in career development programs for young people aged from 14 to 29 years; - support and participation in projects that introduce young people to the demands of the labor market; - stimulating vocational training; - investments in the development of youth access to training to acquire relevant skills for the labor market; 55

- investments in the development of youth access to internships and work experience; - investment and support of dual programs - training and work in a real business environment; - direct involvement in training, guidance and recruitment of young people; - investment in the training of outstanding talents in schools, colleges, vocational institutes and universities.

The purpose of this article, above all else, is to give the chance to the business to reveal its position. We find very often in literature recommendations what we should do, how we should act, how hard it is to make something because of a number of reasons, etc. You will be introduced to what actually is done by two different businesses and what is their opinion on important issues related to the employment of young people. The employers are extremely benevolent and open to youth workers.

Brief interview is revealed below with extremely useful, interesting and substantive answers on the theme "Young people from unemployment to employment" provided by Mrs. Viara Eneva, representative of "Econt Express", and Mrs. Ekaterina Stoyanova, successful young entrepreneur with own Agency for translation and legalisation "STEK" LTD. Tell us briefly about your company and your job.

V. Eneva: "Econt" is a leading courier company on the Bulgarian market. It has more than 500 offices in Bulgaria. There are more than 2,500 people working in Econt.

E. Stoyanov: "STEK" Ltd. works in the field of language translation written and oral.

What distinguishes the working environment in your company?

V. Eneva: People have unlimited opportunities for development at "ECONT EXPRESS". People receive remuneration according to their personal achievements.

Correct employer which complies with each letter of the law.

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E. Stoyanov: The work environment is divided into two aspects coordination and translation. Office coordinator is responsible for coordination and organisation of translations. The office coordination receives orders and distributes them to appropriate translators. For the successful implementation of this aspect of work, it is necessary the coordinator to be able to cope with the dynamism of customers and their orders, to be able to analyse and prioritize the orders and their realisation, to ensure the proper execution, at the same time he/she has to have good communication skills that apply to clients and translators.

On the other hand, the translation aspect is the actual execution of the orders. It is necessary translators to be able to handle with diverse terminology, to assess and allocate the right time for translation, and also to be able to serve well with word processing environments so that to be successful.

What is the average age of employees in your company?

V. Eneva: Perhaps, 30 years old.

E. Stoyanov: Between 23 and 60 years old.

How would you describe the ideal candidate who could work for you?

V. Eneva: Employees who want to develop, while learning.

E. Stoyanov: For office coordinator: balanced, sociable, friendly, with good skills in analysation, prioritisation and allocation of orders; For translators: with good knowledge of the working languages, able to serve with reference tools and word processing environments.

In your opinion, what are the main obstacles to young people to find a first job?

V. Eneva: Most of the companies require people to have experience in the specialty for which they are applying. There is no such requirement at “Econt� – we hire new employees, interns and we invest in their training.

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E. Stoyanov: Despite young people have training from their studies at university, they have no real practice, which means that at their appointment to a certain position they need to be further trained for the job, which is expense for the employer. For this reason, I believe that employers prefer to hire already trained employees.

What qualities are important young people to develop so that to be prepared for the labor market?

V. Eneva: Creativity, thirst for knowledge, to like what they do.

E. Stoyanov: First of all for me is the need young people to have good knowledge and skills in a particular area; advantage for them is to be adaptable to the specific environment in which they enter and quickly development in the field.

Do you think that CV-th and diplomas that candidates represent to potential future employers are often misleading?

V. Eneva: No, I do not think so.

E. Stoyanov: CVs and diplomas give an idea for education and previously held jobs to the employer, but I do not think that pros and cons of the candidates can be adequately assessed solely based on CVs and diplomas. It is necessary personal conversation with the candidate for this purpose, as well as some practical work.

How would you comment on the idea: "If education can not produce the necessary business executives, the business will train them.“?

V. Eneva: There is a Centre for knowledge at “Econt�, which takes care of the training of employees and their attestation.

E. Stoyanov: Educational institutions should provide the basis, while "fine-tuning" of workers to be carried out in the working environment through a certain period of training with specific instructions and guidance from more experienced employees.

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Do you support the so called dual programs - training and work in a real business environment?

V. Eneva: Yes, "Econt" participates in such programs working in collaboration with the University of Ruse "Angel Kanchev".

E. Stoyanov: Definitely yes, as far as the closely profiling of young people in educational institution. The majority of young people do not have a specific orientation on what they would like to work, so this type of programs ease the selection, as young people gain real insight into the operating environment even during training.

Do you think that employers should play an important role in establishing the level of skills and abilities of learners (pupils and students) before their graduation?

V. Eneva: Yes, Econt takes part in a project to update the curricula in accordance with the requirements of the business.

E. Stoyanov: First, I cannot imagine under what form employers could take part in such commitment and with what incentives to be attracted to similar goal. Secondly, if such team is formed by employers who are evaluators, to be reached objective assessment, they will have to be representatives of a wide range of market sectors. In short, I do not think the idea is a viable unless this assessment is part of the training in the dual program with each employer.

What is your assessment of the following idea: the theoretical knowledge and vocational training must be agreed in advance with the business sector on the applicability of the material in a real working environment?

V. Eneva: Yes, Econt takes part in a project to update the curricula in accordance with the requirements of the business.

E. Stoyanov: I think that the realisation of the idea of preliminary coordination of studied subjects with business would guide young people to the priority of business topics, which would be beneficial for both parties - students and employers, because businesses would help 59

for the inclusion (or exclusion) of studying of certain subjects, and young people would gain more knowledge in their respective fields.

What specialists are needed by companies in your sector in the short and long term?

V. Eneva: Project managers, shipping agent, accountants and business analysts.

E. Stoyanov: Translators - specialists in relevant languages with skills for interpretation/translation and office coordinator – who contacts with customers, distributes and processes orders.

Do you think that young people are a vulnerable group on the labor market - no experience, no high performance, are willing to work part-time jobs?

V. Eneva: I do not think so.

E. Stoyanov: I think that young people have no experience actually and therefore they have a lower productivity than their colleagues with more seniority, and from this perspective are vulnerable. However, this is naturally during their "job growth" for all people in a certain direction and it is normal some people to be more adaptable than others. This means that these young people find more quickly the appropriate workplace.

We have been talking about "youth unemployment" without defining that concept. Most often, young people from 15 to 29 years old are included in it. Many of them have been still training but they are employable. Should be unemployed youth considered as part of the real situation on the labor market and not as a separate phenomenon, without engaging the exact definition of the term or not?

E. Stoyanov: I do not think that youth unemployment should be seen in isolation from the rest of the unemployment. However, fresh graduated young people are special group of potential employees because they just “make their first steps� in their careers. Young people need 60

support, manifested in various forms at the workplace as well as young children need parental support for mastering specific skills and habits.

And finally, Would your company provide information to young people who are willing to receive answer to their questions regarding the real working environment (necessary knowledge and skills, work habits and discipline)?

V. Eneva: Yes, we regularly do this with students.

E. Stoyanov: Yes, with pleasure!

What would you advise participants in our project on behalf of their potential future employer?

V. Eneva: Work often is reviewed as source of finance. However, if the work does not bring you satisfaction, the productivity at the workplace will decrease. Intrinsic motivation depends on your goals.

E. Stoyanov: The most important thing is to believe in yourself! Do not rely implicitly on anyone but yourself! People should have the most realistic assessment of what is required of them and what is provided and whether the ratio satisfies them or not. Sometimes people are lucky to find a work place quickly and easily, and sometimes it takes time and disappointments – no matter what is the way, people should give the best of themselves and they have to know that they have a lot to learn from each situation.

I express our gratitude, on the behalf of the Board of the Perspectives Institute, for the sympathy and your significant contribution to the successful realisation of the project "Young people from unemployment to employment".

Svetla Yordanova,PHD Secretary of the Association „Institute Perspectives“

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X.

ABILITY AND ENTREPRENEURIAL SKILLS AMONG YOUNG PEOPLE – A PREREQUISITE FOR INDEPENDENT WORK OR WHAT THEY MUST KNOW IF THEY DESIRE TO BECOME ENTREPRENEURS

Readiness for self-employment among young people in modern conditions is determined primarily by their abilities possessed and secondly by entrepreneurial skills of finding through their ideas, a position and place in the system of division of labor.

Work abilities are acquired in the education system. In the formation of labor motivation the leading role is that of knowledge taught for carrying out of various activities, in the system of division of labor, but among them we cannot miss the work on educating feelings of a hardworking and conscientious attitude to labor obligations. In this sense, school has a leading role in preparing young people not only to acquire knowledge for work, but also for their emotional and moral development as individuals, who are preparing for self-realization in life.

For young people to be enterprising and initiative in the labor market they must possess not only the ability to work, but certain minimum knowledge and skills of entrepreneurship on how to pursue the goals they set. Acquisition of this is the responsibility primarily of the education system; secondly, the social environment which should create employment opportunities for their realization; and third, but not least, the personality of the young person. He/she must show initiative and interest for their self-education on these issues. On the book market and in libraries there is enough literature, including handbooks, which can help him/her.

Entrepreneurship and related to it ideas are the subject of theoretical analysis and research. Problems concerning persons dealing with entrepreneurship are being worked out by many representatives of different scientific fields-economic, socio-cultural, empirical and personal-behavioral. Their desire is to give scientific and reasonable solutions to the questions before them practical issues of business (12 s.31).

Personal qualities and competencies of the entrepreneur are the subject of attention mostly in the personal-behavioral direction. Studies 62

which it includes are divided into two aspects. The first is associated with the study of individual personality traits of the entrepreneur-like intuition, resourcefulness, curiosity and others. In this sense, research into the psychical nature of man are of interest, and therefore to seek and explore different traits, qualities and skills of the entrepreneur. The second includes research on entrepreneurial potential. These are the set of qualities required of the developer such as knowledge, skills, behavior and others (12, p. 39-41).

This analysis has the task to attract the attention of young people in the spirit of personal-behavioral direction, what they need to know when they want to solve the problems of their employment through entrepreneurial initiatives.

In this connection, we will first consider the question of the essence of entrepreneurship and features of the entrepreneur.

1. Entrepreneurship and the challenges that it poses to young people Examining issues of entrepreneurship requires the specification of the content that will be placed in the terms entrepreneur and entrepreneurship in this analysis, because in the scientific literature there are many definitions. They are made from different perspectives: economic, socio-cultural, and psychological. This from our point of view is not a flaw, but rather a true treasure for anyone who is interested in this public activity. In this case the interest in them shall be determined by the selected position to analyze the problems of entrepreneurship.

In the scientific literature opinions of various authors of the entrepreneur and the essence of entrepreneurship are systemized in a historical aspect. An interesting opinion was expressed in 1725 by Frenchman Baudaux. According to him, this is "a person who takes the risk to plan, control, monitor, organize and possess." For Joseph Schumpeter "Entrepreneurs are entities whose functions are carrying out new combinations in which they are included as an active element therein." Alberto Schaper defines the entrepreneur as someone who "takes the initiative, organizes activities in the socio-economic area and assume the risk of this" (14 s.33-36, 15, s.47-49).

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K. Todorov sticks to using the definition of an entrepreneur, which includes "an individual with unique personality traits and abilities that takes risks and invest resources to create something new a new technical system, technology or a new way to produce something that exists, or to form a new market."(13, p. 68).

The selected definitions warrant the entrepreneur to be defined as a creative (innovative) person.

Creativity in the first place requires knowledge of the field of activity that is in the focus of the person. Naturally, foundations are laid in the education system; of course not less is the role of self-education.

Skills formed in school, applied thereafter in the system of division of labor, give the shape of a particular profession. The creative moment in the implementation of each activity occurs when, upon the basis of foreign and their own experience, something new is created and a new idea is born, i.e. in the process of thinking is brought to new solutions.

The idea or decision is valuable when they are logically and aesthetically well justified and adequate to the specific practical needs.

In this sense, creativity involves not only knowledge in a professional sphere, but also in other fields of human knowledge about the society in which a person lives to their needs and interests at the time. Secondly, the open idea, fruit of the creative decisions and efforts of the individual, must transform into the goal. The stated objective motivates individuals to organize its practical application to satisfy a specific not only personal need, but also in important public interest. In other words, the personality of the entrepreneur combines two very important qualities; first, creative (innovative) thinking when making decisions to formulate the idea or ideas, on which the objectives are defined and second, taking action for their implementation in practice in order to create products or services that have not only individual-personal, but also certain social significance.

Speaking from the perspective of understanding the mission of the entrepreneur, entrepreneurship as a social phenomenon manifests itself in every sphere of the social division of labor where there is not simple executive, but professional creative work. This type of work requires innovation in creating a useful product for society, taking a reasonable risk in organizing its production and responsibility to the people, through the participation of which are carried out its related activities.

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According to Peter Drucker entrepreneurship "is by no means confined to the economic sphere, although the term occurs there. It applies to all human activities spanning more closely those that could be labeled as "existential" than those characterized as "social." Now we know that there is little difference between entrepreneurship in the various spheres of activity. The entrepreneur in education and entrepreneur in healthcare - two fruitful fields in this area - do many of the same things, use a lot the same tools and face many of the same problems, as well as the entrepreneur in the business organization or trade union" (16, p. 39).

From the positions expressed by P. Drucker the phenomenon of entrepreneurship is used in all areas of division of labor. And there is a reason, because it is understood by it as a practice. This human practice manifests as individual or collective (team). In this sense, these are two of its main forms. They can be applied both in business and services and the socio-cultural sphere of human activity. Moreover, they can also be applied in companies of differing size, type of property and others.

In order to allow participation in entrepreneurial initiatives, the leading role is that of character traits and qualities of the personality of the young person, in the formation of which school occupies a special place. Along with this, family and social environment are not to be forgotten.

2. Characterological entrepreneurship

traits

of

personality

and

Unlike typological and temperamental qualities of a person, which have a natural origin, it is the character qualities that determine public life and the place it occupies in the system of distribution of activities and work. From this position it is justified for the definition of character to be "as an individual-kind combination of public properties of the personality that express man's relationship to reality and manifest in his behavior, in his deeds" (2, p. 463).

Since the character of a person is "determined by his social life from the social conditions in which man lives and acts" (2, p. 466), the leading social phenomena that form it are knowledge, art and morality.

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The fields of activity through which they are formed are intellectual, emotional and volitional traits of the individual. (5, p. 100).

2.1.Intellectual character traits Intellectual personality traits characterized the individual as a carrier of skills, abilities and beliefs. They are formed through participation in the execution of various social activities, the leading role of which is in learning and work (5, p. 100).

The formation of the intellectual traits of adolescents begins with the acquisition of knowledge, mainly through participation in the learning process under the guidance of teachers. In it they acquire not only the necessary for them knowledge, but also develop skills and abilities to perform certain activities that they will need later in their lives.

Ability is usually defined as "an intentional act, relating to the practical application of knowledge, which albeit not advanced, ensures the success of an undertaken operation in personal advantage, as well as to the advantage of other people." (11, p. 105). The skill is a conscious and purposeful application of knowledge to carry out a transaction or activity, both to personal and interpersonal benefit. In this respect, it can be said that there is a point in the acquisition of knowledge when it is accompanied by its application in the carrying out of certain operations. School helps children to form different skills.

Some of them, later through the process of education and selfeducation, grow into abilities.

Abilities characterize people by the way they carry out the activities through which they ensure their lives. Today we refer to them by the term professions. Modern psychological science determines abilities as "individual-psychological characteristics of personality, which are a condition for successful implementation of a given activity and reveal the dynamics of acquiring the necessary knowledge and skills" (6, p. 457). According to this definition, competence is characterized as individual psychological characteristics that occur when performing an activity that requires the application of acquired knowledge and skills. This activity is part of the division of labor. This is why the people interested in the results are not only those who carry 66

it out, but also the other people with whom the work is being done. In this sense, the abilities of the individual are first viewed in conjunction with the existing system of division of labor in society. From this perspective it is good idea that the term 'ability' be devoid of meaning if it does not refer to specific, historically developing, forms of work."

(2, p. 435).

The capability of the individual to perform one or another activity depends on what types of socially significant activities were established in the society at a certain stage of his/her development; what forms of knowledge and skills these activities bring to people carrying them out them out with the view of producing a specific product, required by the public.

The need for one or another capability as a set of "individualpsychological qualities" in the first place is determined by the sociohistorically established living conditions of the people and the requirements that it has upon them of activities by which to ensure their coexistence. Secondly, it is determined within the frames of what form of division of labor these activities are performed in. Thirdly, how society organizes the process of selecting and preparing young people to acquire the necessary knowledge and experiences to successfully perform the necessary activities is what determines it as well. And fourthly, these are psychological assumptions and requirements for adolescents and what age they can and should be involved in mastering the knowledge and skills relating to a particular activity or activities.

The formation of skills and abilities of young people for professional realization in the education system passes through the following stages: the creation of conditions for participation in the implementation of the acquired knowledge to perform non-independent employment activities, and after the absorption of the required skills one can proceed to conduct an independent executive work (3, p.18).

These are usually stages that accompany primary and especially secondary education. Higher education, in the process of specialized training, prepares young people to perform professional work activities, and through master programs-innovative skills for creative work. In other words, the young graduate needs to acquire professional skills for independent work, which through his/her innovative skills will be able to not only proactively select a place in system of division of labor, but 67

also to produce afterwards a product or perform a service of higher quality.

It is time for secondary and higher education to implement initiatives for lasting cooperation with businesses in preparing young people for work and their professional realization.

Young people should be supported in the labor market by interested businesspeople in access to internships with goal of the acquisition of confidence in the performance of independent executive activities, which are utilized in the secondary education system.

Businesses can directly commit to investing in the training of their young executives and workers, employed at colleges and universities, for the acquisition of creative skills. Their implementation in the future will ensure a higher quality of services or manufactured products.

Committment of businesses to the education of young unemployed people is needed, especially to those who have not yet acquired work skills for executive work by incorporating them into the appropriate training courses.

Young people with higher capacities, who have attained innovative skills for independent work habits and initiatives, deserve special attention. Private and public funds are more than necessary to support their innovative ideas and projects.

2.2. Emotional traits of character Emotional traits of character are associated with the motivation to perform one or another activity. They "are implemented through one or other ideals" (7 s.17-40; 5, s.100).

According to A. Adler, "a sense of belonging to society" is the guiding ideal, by which every man must seek and find the meaning of his life. And not by chance does he recommend that "the child should as soon as possible become a helper, a part of the whole, who gladly helps and gladly leave himself to be helped when his forces are not enough" (7, p. 20).

The sense of belonging to society, including to family and a work community, is associated with human emotion and is part of the emotional traits of a person when he/she lives out and motivates his/her own experiences and behavior not only in accordance with his/her 68

individual interests, but with those of others, and of a community within the framework of which one or other socially useful activity is performed. (3, p. 12).

According to V. Kraus, each person in his life follows ideals, even if not well aware of it. His choice depends "on the origin, the time, the surroundings, the fateful arrangement of circumstances and of the individual temperament, but most decisively - the volume of knowledge, the will and the necessary force" (7, p. 42). It places emphasis on the following ideals: liberty and security, the joy of life and love of one’s neighbor, and of moving forward in professional growth and creativity (7, p. 42).

The ideal for professional development, selection and implementation of initiatives for self-employment has a strong motivational significance in the life of a young person.

The desire of young people for careers, and especially for entrepreneurial initiative, in the first place depends on the social environment-economic and legal.

In the conditions of a totalitarian society the state-planned economy created attitudes and stereotypes about human behavior in the work environment as a lack of initiative and courage to take responsibility, because it descends from superior institutions. They impose conservatism in thinking and bureaucracy in the behavior of the employee, the employee and the specialist. Impetus for signs of economic initiative gives Decree 56 of the Council of Ministers from 1989. It empowers individuals to deal alone with business activities.

In the late eighties and during the nineties of the twentieth century, the transition was made from planned to market economy. The role of the Constitution of the Republic of Bulgaria is significant in this success. It gives a chance for the development of all forms of ownership, advocates in defense of private property and provides rights and freedoms to the individual. The opportunity is presented to be proactive and actively work not only in its own, and the public interest, but for the overall good.

Commercial law, passed by the Grand National Assembly, poses a new beginning for the development of private business practice. The adopted Law for Cooperatives, in turn provides opportunities for the association of small owners and individuals who do not have the 69

resources to independently organize economically, in business or to provide services to the population. Other legal instruments were adopted along with these, that promote entrepreneurial initiatives in creating small and medium enterprises.

Secondly, this is the initiative and entrepreneurial flair of the individual. This is the conviction that one could; on the basis of the lawful rights and freedoms possessed, organize the resources one has access to- individual experience, knowledge and abilities, financial resources, family and peer contacts, in order to work for oneself. The fact that the results of his work are of public interest and therefore should receive adequate public support is not to be ignored.

Thirdly, in order to motivate a young person to give a chance to entrepreneurial interests, the example of good practices of people with a long entrepreneurial practice is worthy of his/her attention.

Initiative and entrepreneurial spirit are leading factors when a person with love takes on a business activity with love. Moreover, those who support his/her initiative are treated with a sense of respect. Of course, this is with a sense of responsibility towards the people who will benefit from the product of its activity.

2.3.Volitional Character Traits A person is not only a knowing and experiencing being, but also a busy and active one.

Voluntary human actions are consistent not only with individual interests, but also with the social environment in which the said human lives and labors. They are determined by the social division of labor.

"By participating in collective work, man is subject to the objective laws of nature, occurring in the properties of the object and the tools of labor, as well as the requirements of industrial relations in which his works proceed, and this makes it a necessary volitional human behavior for the development of one’s will "(2, p. 391).

Freedom of will to take on one or another position in the system of division of labor activities is based on estimates coming not only in the form of the present, but also of knowledge acquired in communicating with other people and education. Man, however, communicates not only with his ideas, but through language and the 70

experience of others. "Words and speech play a crucial role as a volitional regulator.� Speech does not take away the importance of perceptions, ideas, feelings and memory in terms of will; through it they are included in the summary of experience of man" (10, s.236).

Moreover, it is precisely through speech and language that the community is actively involved in shaping the objectives of human behavior. In this sense, the leading role is that of the legislative system and bodies, which create and implement, as well as moral standards and related public opinion.

Voluntary expressions of a person are associated not only with knowledge but also with emotions and feelings. Wundt pays attention to this as well. He viewed them as instigators to action. What feelings and civic ideals man motivates his expressions with is not without significance. In other words, they play a big role in his behavior in the performance of one or other activity.

Human volitional expressions have a conscious character because they are directed not only towards certain individual interests, but also those associated with the existence of others. That is why they are targeted, formed by the living conditions and needs of society.

In connection with the voluntary actions of man are the activities, carried out by him for setting goals that motivate his behavior and actions. Each goal, including the creation of a personal enterprise, has its basis in needs and interests of man, i.e. it is personally motivated. It is determined by the ability to work, organizational skills and needs of income. True volitional action, however, takes into account not only personal needs, but also those of the social environment in whichone labors. In this case, these are the needs of the market produced by the company's product or service, how it impacts positively or negatively on his/her initiatives.

Setting the target for entrepreneurial activity goes through various stages of its realization, which is associated with the struggle of the different motives of individual-personal type, of financial, technological, infrastructural, market and legal nature.

Initially the formation and realization of an entrepreneurial objective has the nature of a passion for something that is not yet clear.

And it is not clear because the intentions, ideas for the activity which will be sought after are not yet specified. The next step is realizing it as 71

something desirable, i.e. having a vision of entrepreneurial ideas, which one would give life to and finally the desired manifests itself as specific request. This is already the level where the conditions and requirements for achieving entrepreneurial goal are well known and understood.

The immediate formulation of each objective, entrepreneurship in particular, placing it on the everyday agenda in the life of a person, passes through the struggle of different reasons for the choice. It is inevitable. The motives may be of individual-personal or public nature.

(10 s.240-241).

Volition does not end with the making of a decision, but rather, the choice of mode of action follows. In many cases, the method of achieving the objective is realized immediately after the decision and is placed as a motive for action. This is in the cases where the executive target has experience from past action. Sometimes the achievement of a goal is possible not in one, but in several ways. Knowledge and experience of the person are a factor in assessing each of them. In all cases it is important to take into account the socially acceptable, publically allowed by law, and morally justifiable way to achieve the objective.

Overcoming difficulties in the process of implementing the decision, or a placed entrepreneurial goal, is also a factor for the completion of a volitional action. They put to the test the knowledge and the experience of the entrepreneur and his/her moral and volitional qualities. These difficulties may be of various nature - from doubts in the selected target, the risks assumed and the ways to achieve it to various barriers of subjective nature associated with communicating with people. They may either offer kindness and support or create obstacles in the process of work. When a person knows themselves and the environment in which he/she is placed well, the likelihood of problems is small, and upon their appearance when they occur selfcomposure and perseverance to overcome them overcome.

For an entrepreneurial goal to be brought to an end, most important is the wil of its implementation and moral implications of what has been achieved.

The will of the personality of the entrepreneur to achieve the objectives he/she has set are manifested by the following volitional traits of his/her character: purposefulness and autonomy, determination 72

and perseverance, restraint and self-control, responsibility and courage.

Literature points out that the voluntary character traits are valuable only if there is a morally educated will to achieve significant goals. This is particularly true of those who are engaged in entrepreneurial activity.

Moral values for good and evil, right and wrong, participate in shaping the rules and regulations of entrepreneurial ethics. They, in the process of interpersonal communication, educate volitional qualities to the entrepreneur, such as inspiring social awareness, responsibility, determination and perseverance, restraint and composure in his/her actions.

2.4. Traits of personality, expressing attitude towards self and others.

In psychological literature popular typology of personality created

by K. Jung is used. Individuals are divided into introverted and extroverted, "depending on their orientation to their own thoughts, experiences and introspection or external impressions and individuals."

In introverted individuals, mental events are focused on their own world and experiences, while with the individuals of extrovert type mental manifestations are directed outwards to public appearances (8, p. 233).

These two types of mental attitudes found by K. Jung match two varieties of focus on the behavior and actions of the individual. In one – the introverted focus, the predominant concern is for themselves and their interests, so it tends to be restrained, persistent and calm, avoiding noisy companies, but if it comes upon failure in achieving personal goals it can fall into depression. The other is interested not only in caring for themselves, but for others by working with them, to seek better prospects for their individual interests. That is why people with this attitude are generally accommodating, showing persistence in communicating with others and are prone to public appearances.

These are two different positions in terms of attitude towards oneself and one’s surroundings that shape the appearance of the way of thinking and action in the process of interpersonal communication (3, p.12).

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The formulated above features of entrepreneuring individuals do in not occur in the same way in personalities of introverted and extroverted nature.

The introverted personality’s predominant concern is for themselves and their interests, so people with this personality type tend to be restrained and insistent, ready to take risks, and their individualism manifests itself in their actions. Such a person usually tends to create their own business. The attitudes of individuals of this type warranted Friedrich von Hayek to argue that individualism is a major driver of entrepreneurship (15, s.48).

The extroverted person, as we mentioned, takes care of themselves, but seeks assistance of others, and by working with them aims to seek better prospects for their individual interests. Therefore, the entrepreneurial initiatives are marked by team approach as in the formulation of ideas for action and in seeking partners to realize the set goals. Such a person is usually willing to participate in the creation of collective entrepreneurship.

3. Basic entrepreneurial steps for the start of independent employment activity Realizing the initiative of young people for independent entrepreneurial activity is associated with knowledge of the basic steps to meet the requirements of which they will be able to successfully launch their inclusion in the system of the social division of labor. In the scientific literature this start is referred to as the entrepreneurial process. It is divided into three phases. The first of these includes the steps of detecting possible ideas for their own entrepreneurial activity, evaluation of acceptable ideas, the specification into an entrepreneurial objective analysis of the possibilities of the external environment and the resources required for the activities resulting from the intended purpose. The next phase involves the location of entrepreneurial activity, the institutionalization of activity in a particular legal form, the development of an entrepreneurial plan, organization and management of entrepreneurial activity. The last phase is the closure of the activity (14, p. 66).

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Before proceeding to initiate certain entrepreneurial activities, the young person should first assess their skills and entrepreneurial flair, whether he or she is emotionally motivated to complete it and if he/she possesses the necessary volitional qualities needed for a set entrepreneurial aim to be brought to fruition. Entrepreneurial activity is associated with risk-taking and personal responsibilities. Secondly, the skills, abilities and work experience have to help in the orientation in the social division of labor, to look into it and find a possible free and unoccupied niche, in which to breathe life.

The entrepreneurial process starts with a focus of attention on the needs of the division of labor for opening the door to private business.

Finding it has a creative nature. Generating ideas for entrepreneurial activity from the young person is based on personal needs and interests, receiving support from abilities acquired through education, eventual work experience or desire for activity which would be carried out with zest and enthusiasm. Of course not irrelevant are the individual impressions of goods and services demanded by the population who have not become an entrepreneurial initiative, and government initiatives addressed to young people to boost their employment. These are all essential prerequisites to draw in and focus on the future entrepreneur to a specific field (economic, social or culturaleducational) of the division of labor for entrepreneurial activity (14, s.64-68).

The formation of values and operating entrepreneurial ideas require the exploration of the field of division of labor, to which the young entrepreneur has turned, and the specification of what activities he/she shows interest in and would love to be engaged. The study has a cognitive character because it requires familiarity with literary sources - books, magazines and other Internet-information which will enrich the knowledge of the young person in the activities he/she is interested in.

What immediately follows is the exploration and examination of how other entrepreneurs organize and carry out such activities and to what extent the market needs a product or service that will be the result of its activities. The researched public experience, along with acquired personal educational and practical experience, with the help of imagination creatively transforms into a new idea or ideas for individual action. This creative transformation of public and personal experience 75

in new abstract images is associated with implementing the laws of logic to conceive truthful ideas. In other words, the creative process is not a frivolous manner of thinking, but is subject to logical rules through which a correct and adequate idea of reality is formed. The innovative ideas formed through the help of imagination can afterwards be expressed in oral or written form.

The accepted idea or ideas for undertaking certain activities in the field of division of labor must be consulted with a specialist or expert who can better assess not only the capabilities of the head contractor, but the market environment for its implementation (14 in. 70).

The next step requires, by the acknowledged and discussed ideas, to specify and formulate the specific desired goal for employment, which matches the knowledge, experience and capabilities of the young person. The realization of this goal, which the young person sets up for him/herself requires analysis of the environment, of the recourses (human, capital, organisational and productive) and market research.

(14, pg. 70-74).

After being done with analysing, comes the phase of localizing the place of the company, its institutionalizing, the development of the entrepreneurial plan and building the organisation and its management.

(14, pg. 14-79).

The choice of the company's place is of matter to its success. the placement must be in compliance with the production and the character of the service, which it will deal to its clients. Proximity to raw materials and customers, as well as options to ensure a workforce is essential to the successful operation of the company.

The choice of legal form for registration of the company to carry out entrepreneurial activity depends on the capabilities of the entrepreneur, his/her starting capital, tax incentives, etc. Any form of registration gives advantages, but it is accompanied with certain restrictions. The entrepreneurial initiatives in Bulgaria can be registered as sole proprietors, partnerships or companies and cooperatives. Young entrepreneurs are most often oriented to company registration of sole traders or cooperative, which creates some incentives for registration.

It also allows individuals to intervene in labor-business relationship with the cooperative itself or receive certain services from it.

The achievement of positive results in an entrepreneurial activity 76

requires the development of an entrepreneurial plan. It usually includes: introduction to and summary content of the plan; activity of the company and its product; management and organization of the activity - production, management, development; financial plan and applications. For its creation is required knowledge, skills and experience (12, pg. 181-182).

The entrepreneurial plan is seen as the basis of the cooperative and organization and management of the company. They relate to the activities of the organization of production, selection and development of governance structures, management teams, the control system and the supply of raw materials. The developer should care more about the forming and maintaining a suitable psychological microclimate in the company that encourages members of the working community to be proactive and innovative in carrying out their duties. (14, pg. 77-78).

The management of the company over time may be accompanied by difficulties and bad economic results that may compel the developer to act on the dissolution of the company. This is also a process that must be managed by commissioning this work to a specialized person. This way the entrepreneur can prevent negative effects of his/her activities and will maintain the good name of their company. (12, pg. 185).

The entrepreneurial process is not only one of the phases of creating a new company, also it is a repetitive component in the company's life. It appears again in any management decision concerning the opening of new production or improvement of existing such. (14, pg. 78).

4. Entrepreneurship and communication.

Communication plays an important role in interpersonal relationships. The formation of the human personality and operation of any activity that they carried out together with other people is impossible without communication.

From a psychological point of view L. Vygotsky defines communication as “a process, based on reasonable understanding and transmission of thoughts and experiences requiring some system of resources.�

In the spirit of this thesis is also the opinion of communication of 77

B. Parygin. He also considered it "not only as an act of conscious, rational shaped verbal exchange of information but also as an immediate emotional contact between people".

According to these definitions the process of communication is a two-way process, involving at least two parties. In carrying this out the leading role is on the transfer of some experience (information) from one person to another, and with it the certain emotional experiences.

The transmission of experience in the process of communication is not the goal itself. It serves for making a decision or a behavioral strategy by the person who receives it. In this sense, D. Gurdev considers communication 'as a valuable mechanism for the transmission and absorption of “set, gained and already checked� practical social experience valuable for making optimal behavioral strategy in a number of problematic situations' (17, pg.73) The essence of communication, seen as an interpersonal process lies in the transmission of certain information or social experience (knowledge) from one person to another for the purpose of its use for making a decision or a pattern of behavior. This process of transmission and reception of experience (information) is accompanied by certain experiences from both sides. In interpersonal relationships by communicating to assist the host side to solve some task or to convey one or another behavior, i.e. communication is a two-way process, implemented with the participation of both sides.

The opinions expressed on communicating and the comment on them are further refined and the theses of its functions.

According to B. Lomov communication performs three functions that occur in unity: information-communicative, regulatory communicative and affective-communicative (17, pg. 75).

The information-communicative function covers all processes related to transmission and reception of information (experience) between two persons or parties. It is determined by speech communication and, in particular, its mission is to carry out cognitive activity in exchange for gaining knowledge or systematic social experience.

The regulatory communicative function is linked to human behavior. The transmission of a message or knowledge aims to instill a certain behavior of the receiving side.

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The effective-communicative function of communication is reflected in the impact of exchange of experience (information) on the emotional state of the parties involved in the communication.

The functions of communication indicated by Lomov correspond to the three manifestations of human mental life of cognitive, emotional and volitional (behavioral) character. Or in the process of communicating with both parties involved mobilizing their psychic powers.

On each of the functions of communication more or less weight can be given to interpersonal relations.

Communication is necessary for people not only get to know each other and express what they want, but also for guiding the behavior and actions towards the common goals coming from their life together. In this sense, the leading role of the language in which communication takes place between them and the institutions that manage them through it.

4.1

The positions between operators of communications.

From the perspective of these clarifications communication takes place between two entities - individuals or institution and personality.

The relations between them are determined by the positions which are between them.

The first position of entities is that of hierarchy. This attitude of communication between operators in historical aspect is the oldest and is associated with traditional tribal communities. Determined by the authority of one of the parties with experience or age. In this case, the side with less experience listens and in the process of speaking accepts with confidence the experience of the other side, which is with authority. Usually, communication between people with different business experience is hierarchical in nature and the influence is mainly on the behavior of the younger entrepreneur by the authority of the older ones. This position is suitable when communication between youngsters and entrepreneurs with extensive experience establishes relations of respect and mutual trust.

The second position of entities is asymmetry. One side has a resource that can be gained not only by experience, but by a different 79

nature, such as finance. It is able to dictate the relationship of communication. From this type of business are the organizations. In them comes the regulation of relations, which has an impact of one side on the mind upon the other. In this sense is defined the communication.

It has the character of 'subject-object relationship in which the subject transmits information and the object enters as a passive succeeded'. (18, pg. 11). That character of communication comes out between employee and employer best.

The current market environment puts business partners in competition. Caring for the prosperity of their own business or organization, in which the manager works, affects relations and ways of communicating with partners or customers. Communication between them is dictated by the interest to obtain certain benefits for themselves.

In the name of individual success every businessman and entrepreneur is willing to assert their truth and they strive to protect it by all means, not only morally justified but also by manipulative means, such as disclosure of information and the use of half-truths. An agreement for joint action, after discussions, business talks or negotiations is achieved by emphasizing the arguments of reason and pragmatism. Competition between individuals who are business partners, puts on trial their moral qualities, too. Since caring for personal prosperity is a leading motive in communication, relationships can sharpen and acquire a conflicting nature (17, pg. 142).

The third position of the communication is the equality between the two entities or partners. Freely exchanging experiences and ideas.

Communication aims to solve a particular problem according to the internal beliefs of both sides. Based on exchange of experiences and ideas everyone in their own belief reaches the right decision for both parties. In this case it can be assumed that communication has the character of mutual influence. It manifests itself in leading communities built on the principles of cooperation and of interests and mutual cooperation to achieve the ensuing goals. Communication is dictated not only by concern to protect individual interests and goals of each of the partners, but also by the desire to support each other and to achieve common goals. In this case, the interaction between them lies on the principles of humanity and ethics in communication.

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4.2

The role of speech and language in the process of communication.

Speech is a form of communication in which one not only transmits another form of communication, but it also expresses their emotional state. In some cases, far better to understand what the person says is not by the message content, but through the feelings and emotions with which the message is said.

As far as the manner of speech of the message understand how one thinks, so in the way of their expression we extract an impression about what experience the statement is accompanied with, i.e. what is the attitude of the speaker to their message. Furthermore, through his speech, one can forward their wish another to do something in his favor.

In this sense, the speech not only carries information about the content of the message but also of the attitude of the speaker to the message and desires for the actions of others.

Speech communication involves the use of words. Every word should be used as intended, as to not to create ambiguity in transmitting the message. In this connection it is necessary to know the specifics of the language.

Language is a socially established form of communication. It is forms of the speech of the speaking people, but is not cover with that alone. While the primary function of the speech is a cognitive discourse, i.e. In the transfer of experience between two parties, expressed in words, language plays very important functions. It connects most directly the members of a society. Through this form are expressed and exchanged thoughts, ideas and transmitted experience from one generation to another. What appears to be an essential tool for understanding the reality of immediate life, through it are possible scientific knowledge and literacy and education of the younger generation. Along with this very important function of language are the means by which to form one or other behavior and consciousness of people, i.e. participating in the conduct of their life together. Therefore it requires, firstly, for them to be cared for, and secondly, the communicators to know its laws.

Especially important for every nation is to have a literary language. It is related to different spheres of life that outgrew popular 81

traditional lifestyle and is serviced by local talk. So there is a lot more complexity and functions.

Typical of literary language is its high procession. It manifests itself in the richness of its vocabulary, word-formational and stylish means in the complex functioning of its grammatical system and greater refinement of its sound side.

No less essential feature of literary language is the unity of pronounced rules, forms, the meaning content and the syntactic use of words. This unity is established gradually and is inevitable in practical communication of every nation.

Normativity of literary language stems from its very nature - it must be the same for those who communicate through it. It appears over dialectal form which provides the necessary ease of communication between its media. If those rules are not followed disruption in mutual understanding will arise, the message won't be perceived by listeners as the spokesman desired. The statutory language provides its proper functioning and perception.

Respect for the rules and norms of the literary language - phonetic, morphological, grammatical and syntactical by keeping them in a business communication is a feature of every person, respecting themselves and the opponent or the listener.

On the various forums and business meetings, the representatives of business organizations and associations must defend their interests, also to express opinions, to report on decisions to engage in business talks and discussions, to make speeches and so on. On those can be pursued different goals, depending on the occasions, generating them.

The skill to formulate them exactly is essential for the successful outcome of the meeting.

The well thought-out and detailed objectives of the organization predetermine the form of the communication and the rhetorical means by which it will be raised.

4.3

Forms of communication

Communication between partners in the public and business relations are carried out verbally (through dialogue and monologue), epistolary and nonverbally. To the dialogic communication are verbally 82

referred dispute, talk, business talks, negotiations, discussion and dispute and to the monologue are speeches and lectures, welcoming addresses and others. Epistolary forms are writing an application note, a cover letter. Nonverbal forms of communication are connected by using options and control over the external facial expression, tone of the voice, the clothing, the posture, the movement of hands and others.

4.3.1. Verbal communicating – dialogical forms Dialogic forms of communication are talking, business talks and dispute. Each of them has specific features that should be known by the young entrepreneur to successfully use them in cases of communicating with business representatives.

Discouse Discourse is a common form of business communication. The successful and conductive requirement is to be preceded by thorough research of the target. It is a conversation in which the participants are equal and sympathetically expand and deepen their knowledge of an object or a phenomenon without conflict. Bad impression will leave the one interlocutor who allows him/herself to be placed over other participants in the discourse. It bears a bad result and doesn't overestimate the capabilities of the other side. To complete the lecture with positive results on both sides is required not only to be well prepared, but to refine both their speech and emotions, postures and gestures. It is not necessary to demonstrate absolute confidence about the topic but it is also necessary to avoid underestimating the knowledge and professionalism of opponents (18, pg. 328).

Business conversation The business conversation is a form of communication that is widely used in business organizations. This form may be random in nature and to occur in the work process between the business partners when necessary clarification of issues is related to their collaboration.

Any business communication must make sense for both sides. The objective of every business conversation is agreement on the basis of 83

an information exchange problem or situation. In order of a conversation between business partners to be effective it that it must be preceded by preparation. It involves studying of the situation and familiarity with the position and motives of the other side to discuss the problems arisen. The party leading in business talks should aim at creating a climate of goodwill. It is therefore desirable to start the conversation with consideration of general provisions on the discussed subject, which have more cognitive in nature and would not cause negative reactions in the interlocutor. The decisions to be taken are to rest on facts derived from the objective conditions of the situation, that has become the subject of conversation and of course, by coordinating positions and judgments of both parties. When there are significant disagreements on the funds or means offered by both sides to solve the problem, the ethics required to respect the opponent to have his own opinion. Derogatory nature of the business conversation as the dialogue form are the decisions that are taken not on the basis of objective facts, but on one-sided benefits or certain ambitions of one of the parties.

To be a constructive business conversation, it must be a subject to a specific problem, the resolution of which the two sides are interested.

For pragmatic person the business conversation is useful, even if it is only a mean of obtaining desirable and advantageous information.

Dispute Dialogical form of communication is also a dispute. In it the two sides do not seek a common solution to the problem faced. The aim is each of them to establish their own opinion and position as the only correct one. Usually considered is the unnecessary adoption of certain rules for arguing. That is why this dialogue form often grows into conflict. Each new argument entails a denial position of the other side.

Not a few cases where both sides have even forgotten the very controversial thesis.

In business relations the dispute is not always the winning form of the realization of verbal communication. According to Dale Carnegie the only way to win an argument is for it to be avoided. The suggestion to avoid disputes with business partners is by controlling the situation giving rise to irreconcilable positions, while inevitably to be made with 84

cultural resources using certain arguments and relies on ethics.

Businesslike requires the dispute to be muted by the very culture of keeping it from both sides. The positive in the dispute is the opportunity to get to know even better the opponent, to understand the nature of their evidence and of course in the grounds of its claims. The dispute may be considered as a reliable way to hear criticisms and evaluations of especially the subordinate persons in the company for fairness in its management, but when they come from customers, for its service quality. (19, pg. 128-131).

4.3.2 Business correspondence Written business communication is preferred by leaders of organizations that wish to have documented relationships with its partners. It also has the advantage of oral supplements (verbal) contacts and to mount their relations by legally valid documents. Written communication is one of the levers of regulation and relations within the business organization. Therefore, business correspondence was formed of business (inter-institutional) and internal institutional.

Business (inter-institutional) correspondence aims to maintain a well-intentioned mutual awareness of solving major issues among sides. It is performed with different by type, character and use of documents such as contracts and annex; letter - request; letter - offer; letter - claim (objection) and letters of PR – complementary, of greetings, condolences and of others. Internal institutional correspondence regulates employment and business relationships in the organization through the following groups of documents: corporate (organizational) - job description, job specification report, explanatory memorandum, information, proposal reference Protocol; total administrative - a certificate, a certificate, a declaration; Organizational distribution - warrant of attorney documents related to job applications - application, CV, cover letter, references, business card (19, pg. 12-14).

Rules have been established and standards of the written layout of each type of document to serve impeccably partners and the internal management problems of the organizations.

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4.3.3 Nonverbal communication.

For the business tone in the relationship between manager and staff of the company, as well as in the relationship between business partners, important is the knowledge of nonverbal communication tools that accompany the spoken word. They are a factor in establishing trust between them, creating a cozy environment for a fruitful dialogue.

Nonverbal communication brings no less requirements to the contractor in his role as a leader, negotiator or a seller of goods and services. We will not be wrong if we compare it with a good actor only that the stage of life is one in which you have to converse with the staff of the company or participate in business conversations. He must be qualified to speak on the issue under consideration and measured movements of the hands, face and sweetness of his smile to emphasize the strength of his word. In the process of nonverbal communication are exchanged and meanings through proxemics (spatial positions between speakers) kinesics (body language), vocalization (intonation features of votes) and appearance.

Spatial dimensions of the nonverbal communication cover the place of business talks, environment and spatial positions between participants that affect businesslike in the process of communication.

The place of the meeting is not insignificant - office or hall table around which are held the talks - round (implies equality) or rectangular. In business communication there are established norms of distance between speakers. Proximity is an expression of sympathy and remoteness of reticence among partners. With business calls, communication has temporal aspects, too. They concern the attitude of the participants at the beginning of the talks, the duration of the meeting and so on.

The kinesical nonverbal communication is related to body language. These are the signs and signals coming from facial expressions, eyes, facial expressions, gestures are associated with their body movements and posture.

The eyes are an important component in communication. For example, a business meeting in view of the speaker partners can judge your confidence and security by how you are asserted inclined to maneuvers or how you are to be conciliatory. A well armed with 86

knowledge eye of the partner who listens can capture what are the experiences and thoughts of the speaker are. The look can be used as a barrier of disguising the true experiences. It is an art to handle the eyes, which is why in the scientific literature are being given advices and guides to what you need to know and how to use eyes (19, pg. 146-147).

In the business communication through individual eyes, smile, the expressiveness of the lips, the forehead frown and grimaces issue signals that express the psychological traits of character and the culture of the speaker.

Of the group a contingent gesture of importance is the handshake.

Lending a hand at a familiarization the process of negotiations and in the separation after its completion, are universally accepted and an established norm. The way of a handshake can give additional information on the relationship between the partners. For example on the first meeting of a hand shaking a senior lecturer offers to shake the hand of a subordinate who shakes their hand after this call.

The gestures that express emotions during the dialogue are drumming of the fingers – which issue impatience or boredom, clenched fists - aggressiveness and others.

There are also rules for the body position in conversational communication. In negotiations, for example, the body should not be relaxed, nor the head should rest on the hands and they should not lean on the table.

The voice is among the nonverbal signs of communication, which are relatively more difficult to master and are subject to conceal. The intonation that accompanies the word can be in its favor, but to contradict it, i.e. one could argue one, but by their intonation to have aloud the other side has to understood the opposite/ the tone of voice high or low, the pauses while speaking and rate of speech can be used to achieve a certain effect on the pronouncement of the word.

The appearance and clothing in non-verbal communication inform of the intelligence and culture of the business participants in the business conversation. The manner of dress issues not only the professional position, but also the individuality of the man. The clothing provides information on their gender, age, ethnicity, ideological preferences, company affiliation and cultural environment in which they live.

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Non-verbal means of communication must be known and of course intelligently applied on professional and peer meetings and business talks.

5. Conclusion Successful entry of a young entrepreneur in the system of division of labor for a private career requires both ability and creative thinking, as well as love for the chosen occupation and the will to act to overcome difficulties on the path the entrepreneur has chosen. Knowing the entrepreneurial process directs the entrepreneur on what steps to take not only when starting their own business but also when they will have it updated. Resource for any entrepreneur is also the ability to communicate with partners and customers.

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